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H, 5 , 

PRESIDENT’S INQUIRY IN RE ECONOMY AND EFFICIENCY 


OUTLINE FOR THE 

RECLASSIFICATION OF ESTIMATES OF 
GOVERNMENT EXPENDITURES 
ON A UNIFORM BASIS 77^ 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 
1910 












Pioc- 

. 1 - 


Nomenclature to be used in the reclassification of estimates of amounts 
needed by the several branches and departments of the Government for 
expenditure during the fiscal year 1912. 

A. Salaries, wages, and other compensation for personal service. 

B. Traveling expenses. 

C. Subsistence (while not in traveling status). 

D. Garage and stable service. 

E. Freight, expressage, drayage. and haulage. 

F. Telegraph, telephone, postal, and commercial messenger service. 

G. Printing, engraving, lithographing, and binding. 

H. Advertising and publication of notices. 

I. Heat, light, and power. 

J. Special and miscellaneous services (other than personal). 

K. Materials. 

L 1. Stationery, drafting, photographic, educational, and scientific 
supplies. 

L 2. Fuel (including burning and illuminating gases, oils, and 
liquids). 

L 3. Mechanics’ supplies. 

L 4. Drugs, chemicals, cleansers, hospital and laboratory supplies. 

L 5. Wearing apparel. 

L 6. Forage. 

L 7. Provisions. 

L 8. War supplies and accessories. 

L 9. Special and miscellaneous supplies. 

M. Equipment, including furniture and furnishings. 

N. Structures. 

P. Parts. 

Q. Live stock. 

B. Land. 

S. Purchase price expenditures for rights—to demand, control, or 

enforce action, or to act. 

T. Bents, royalties, and other current expense accruals for ease¬ 

ments, franchises, permits, and privileges. 

V 1. Payment of debt. 

V 2. Interest. 

Y. 3. Befunds. 

Y. 4. Awards and indemnities. 

W 1. Sinking funds. 

W 2. Insurance and depreciation funds. 

X 1. Pensions, retirement salaries, providence, gratuities, subsidies, 
and burial expenses. 

X 2. Trade subsidies and bounties. 

Y. Losses. 

Z. Contingencies and miscellaneous. 

ro. Bepairs and replacements by contract and open-market order, 
co. Construction by contract and open-market order, 

po. Production by contract and open-market order. 

67004—10 ( 3 ) 


DEFINITIONS. 


In the preparation of estimates the foregoing nomenclature, in¬ 
dicating classification of expenditure, will be understood to have the 
following definition and content: 

FOR PERSONAL SERVICES. 

A. Salaries , wages , and other compensation for personal services .—• 

All expenditures for services which are personal in char¬ 
acter a —including regular salaries and wages and pay while on 
leave; holiday, Sunday, and overtime allowances; extra pay 
for special assignments; special-service fees and compensa¬ 
tion, whether rendered under contract or open-market order 
or otherwise, such as professional-service fees, fees for 
technical advice or information, special technical work when 
not paid on a per diem, monthly, or annual salary; bounties, 
for military service, trophies, prizes, awards, badges, and cer¬ 
tificates for personal service; services and allowances com¬ 
bined when settled as one sum; services, including equipment 
when the compensation for furnishing equipment is included 
as one sum in the rate of pay. 

FOR SERVICES OTHER THAN PERSONAL. 

B. Traveling expenses. —All expenditures for services other than per¬ 

sonal * * * * * 6 the end or purpose of which is to carry persons from 
place to place whether by land or water, or to provide subsist¬ 
ence while in traveling status—including railroad and steam¬ 
boat fares; sleeping and chair-car fares; food and lodging 
en route; carriage, coach, cab, horse, and automobile hire, and 
street-car fares en route; per diem allowance en route; mileage; 
tolls, passports, etc. 

C. Subsistence (while not in traveling status). —All expenditures for 

services other than personal the end or purpose of which is to 
provide food and lodging to persons while not in traveling 
status; commutation of rations; commutation of and credit for 
clothing; or expenditures in the nature of “ commutation of 
quarters, heat, and light.” 


0 Personal services will be understood to mean the act or acts of particular 

natural persons, performed by virtue of a contract of employment (express or 

implied) under the direction and control of another during the period of such 

service the person performing such act or acts having subordinated his skill 

or ability to such direction and control. 

& Services other than personal will be understood to mean the results of acts of 
persons (individual or corporate) who, by contract (express or implied), have 
undertaken to accomplish the same without giving or imparting any right to 
direct or control the abilities or services of the particular person who under¬ 
takes to accomplish the results which are the subjects of contract. 


( 4 ) 



I). Garage and stable service. —All expenditures for services other 
than personal the end of which is to provide for the storage 
and care of automobiles, horses, and other local transportation 
equipment—including the board and caring for horses; the 
storage of horse vehicles and equipment; horseshoeing; horse 
clipping; veterinary charges, when made as part of a stable 
charge. 

E. Freight , expressage , drayage , and haulage .—All expenditures for 

services other than personal the end or purpose of which is to 
carry things (other than packages by post or commercial mes¬ 
senger), or deceased persons, from place to place—including 
freight, incidental storage, and demurrage; express other than 
local, with incidentals and storage; drayage and local express; 
the hiring of hearses and funeral cars or conveyances; the 
hiring of teams, horses, carts, and trucks with drivers not on 
the pa y roll. 

F. Telegraph , telephone , postal , and commercial messenger service .— 

All expenditures for services other than personal the end of 
which is to provide artificial means of communication—includ¬ 
ing charges for telegraph, cable, telephone, and commercial 
messenger service, and the transmission of communications or 
packages by post. 

G. Printing , engraving , lithographing , and binding. —All expendi¬ 

tures for services other than personal, the end or purpose of 
which is to imprint or engrave characters on paper, cloth, or 
other material for publication, and to fasten paper or other 
materials together by binding—including the printing, engrav¬ 
ing, lithographing, and binding of laws and ordinances; ex¬ 
ecutive and departmental orders and instructions; printed 
reports, minutes, and proceedings; special printing, engraving, 
and binding; rebinding and mounting. 

H. Advertising and publication of notices .—All expenditures for 

services other than personal, the end or purpose of which is to 
attract attention or notice to a want or desire or to satisfy legal 
requirements—including notices posted or published required 
by law; advertising for bids; advertising for labor and serv¬ 
ices; advertising for sales of property, leases, and special 
privileges; recruiting the army and navy, whether by means of 
published or posted notices, exhibits, demonstrations, lectures, 
or other special features and devices. 

I. Heat, light , and power service. —All expenditures for services other 

than personal, the end or purpose of which is to supply 
heat, light, or power (including electricity), as distinguished 
from materials and supplies adapted to heat, light, and power 
production. 

J. Special and miscellaneous services (other than personal ).—All 

expenditures for services by contract or open-market order, 
other than personal, which can not be allocated or made a 
direct charge to any of the specific classes above defined—in¬ 
cluding charges for storage of things not en route; rewards 
for detection; commissions other than for personal services; 
court and other public office fees; charges for collection and 
exchange; tuition of students abroad, etc. 


6 


FOR THINGS. 

K. Materials. —All expenditures for things not in the state of nature, 0 
and not fixed to the land or to structures, which have not been 
finally adapted to a particular use, and which require further 
modification or combination in order to adapt them to final 
continuing use or for consumption—including raw materials, 
such as metal-bearing ores and reduced metals; crude mineral 
oil and asphalt; minerals other than metal'-bearing or bitumi¬ 
nous; standing timber and logs; fiber, sap, and dye produc¬ 
ing plants, and other vegetable crudities and unadapted 
vegetable products, including wheat, barley, and rye; un¬ 
adapted animal products; also generally but not specifically 
or finally adapted materials such as metals in sheets, bars, 
rods, wires, pipes, threads, etc.; carpenters’ and cabinetmak¬ 
ers’ hardware; nails, bolts, rivets, screws, chain, wire rope 
and cable; mineral pitch, prepared asphalt, and other gener¬ 
ally adapted bituminous products; terra cotta, brick, dimen¬ 
sion stone, plaster, concrete, and other generally adapted non- 
metallic mineral products; lumber; textiles, knitted and netted 
goods, felt and fibrous cordage; leather and dressed pelts. 

L 1. Stationery , drafting , photographic , educational , and scientific 
supplies . b —All expenditures for things not in the state of 
nature and not fixed to land or structures, which have been 
finally adapted for office or desk or for photographic, educa¬ 
tional, or scientific use, and which when used are actually or 
constructively consumed—including blank and printed record 
books; blank distinctive, water-marked, and special paper, 
and paper boards; handwriting instruments and devices; 
adhesives and fasteners; desk accessories; supplies for type¬ 
writers and other mechanical office devices; rubber stamps; 
drafting supplies; sensitized photographic papers and cloths, 
emulsions, developers, hardeners, fixers, washers, driers, mounts, 
plates, films; text-books (for students, not purchased for 
library), test tubes, litmus paper, filter paper. 

L 2. Fuel (including burning and illuminating gases , oils, and 
liquids). —All expenditures for things not in the state of nature 
and not fixed to land or structures, which have been finally 
adapted to heat, light, and power production—including coal, 
coke, wood, charcoal, kindling, burning and illuminating oils, 
liquids, and gases. 

L 3. Mechanics ’ supplies. —All expenditures for things not in the 
state of nature and not fixed to land or structures, which have 
been finally adapted for the reduction of friction and attrition 


° Things not in the state of nature will be understood to mean all things which 
have been severed or extracted from their natural location or setting, and all 
animals slaughtered or apprehended for slaughter, for the purpose of making 
them available for use. 

6 Supplies will be understood to mean all things not in the state of nature and 
not fixed to land or structures which have been finally adapted to a particular 
use for sustaining life or for the production of mechanical energy or power, or 
for other purposes, but which when applied to the use for which they are 
adapted are consumed, i. e., they do not remain in the same form for continu¬ 
ing use. 





7 


or for polishing or abrading not included under cleansing sup¬ 
plies (L. 4), and which when applied to use are consumed— 
including lubricating oils, grease and graphite, lubricating 
compounds and mixtures, waste, carborundum, pumice, rotten- 
stone, emery and sand paper, and other polishing and abrad¬ 
ing supplies. 

L 4. Drugs , chemicals , cleansers , hospital and laboratory supplies .— 
All expenditures for things not in the state of nature and not 
fixed to land or structures which have been finally adapted for 
use as medicine, or as chemical agents or reagents, or as 
cleansers, antiseptics, disinfectants, deodorizers, perfumes, or 
other supplies for toilet purposes, and which when applied to 
use are consumed—including vegetable and animal drugs and 
extracts, acids, chemicals and chemical salts, chemically pure 
metals; prescriptions and compounds; proprietary medicines; 
gases (not included under Fuel) ; soaps and other chemical 
cleansers and cleaning preparations; antiseptics, disinfectants, 
and deodorizers; surgical lint, absorbent cotton, bandages, 
gauze, and other absorbent and bandage supplies; trusses, 
braces, suspensories, crutches, artificial limbs, eyes, teeth, ear 
trumpets; rubber tubing and bandages, douches, and other 
ward, clinical, or laboratory supplies; perfumeries and other 
toilet supplies. 

L 5. Wearing apparel. —All expenditures for things not in the state 
of nature and not fixed to land or structures which have been 
finally adapted to human use for body covering, protection, 
and comfort, excluding hospital and laboratory supplies (L4) 
and furnishings (M) —including suits and parts of suits and 
outer body coverings; head coverings and accessories; hand 
coverings; foot coverings and accessories; collars, cuffs, shirts 
and shirt waists; underwear; pocket linen, neckties, belts, cor¬ 
sets, suspenders, garters; athletic wearing apparel and miscel¬ 
laneous wearing apparel. 

L 6. Forage. —All expenditures for things not in the state of nature 
and not fixed to land or structures which have been finally 
adapted for the feeding and bedding of animals and which 
when applied to use are consumed (other than those things 
above classified as provisions)—including roughage, such as 
timothy, alfalfa and clover, and wild hay, corn fodder, straw, 
and coarse grasses; grains (other than wheat, barley, and rye) ; 
other concentrated feed, such as meal and crushed grains, oil 
cake, and other by-products used for forage; succulent feed, 
such as ensilage, rutabagas, mangels, and forage beets; rock 
salts; mixed feed; bedding. 

L7. Provisions. —All expenditures for things not in the state of 
nature and not fixed to land or structures which have been 
finally adapted to use for human food—including farinaceous 
and other bakery foods; fresh meats, fish, game, and fowl (in¬ 
cluding animals apprehended or marked for slaughter) ; canned 
and preserved meats, fish, game, and fowl; fresh fruits and 
vegetables; canned and preserved foods; fresh dairy products 
and eggs; coffee, chocolate, tea, spices, and flavorings; sugar, 
molsasses, sirups; and other foods for human consumption. 


8 


L 8. War supplies and explosives .—All expenditures for things not 
in the state of nature and not fixed to land or structures, which 
have been finally adapted for use in war, and which when ap¬ 
plied to the use for which they have been adapted are con¬ 
sumed, and all explosives adapted to signaling, and to extrac¬ 
tive, scientific, educational, or recreational purposes—-including 
black and smokeless powder, dynamite, nitroglycerin, lyddite, 
fulminates, fuses, percussion caps, cartridges, shells, projec¬ 
tiles, hand grenades and other war missiles, marine-torpedoes, 
signal rockets and torpedoes, and pyrotechnic supplies. 

L 9. Special and miscellaneous supplies .—-All expenditures for things 
not in the state of nature and not fixed to land or structures, 
other than those classified above, which have been finally 
adapted for use and which when applied to the use for which 
they have been adapted are actually or constructively con¬ 
sumed—including recreational supplies, such as baseballs, ten¬ 
nis balls, golf balls, rackets, clubs, foils, body protectors and 
guards, and other small and unattached sporting goods; water 
and ice; weather bureau supplies; meat inspection, testing, and 
experimenting supplies; household and cleaners’ supplies, not 
included under cleansers (L 4) and under household uten¬ 
sils (M). . , . 

M. Equipment , including furniture and furnishings .—All expendi¬ 
tures for things not in the state of nature, fixed or not fixed to 
land, which have been finally adapted to continuing use for 
the generation, transmission, and utilization of electrical or 
mechanical power; and all things not in the state of nature not 
fixed to the land which have been finally adapted to continu¬ 
ing use for increasing the efficiency or economy of human ef¬ 
fort, or for sheltering, supporting, storing, carrying, or pro¬ 
tecting persons, animals, or things (excluding items classified 
under structures)—including harness and other trappings 
for power animals; heating, lighting, and power equipment, 
such as stoves and air-heating apparatus, water heaters, steam 
generators, steam engines and auxiliaries, internal-combustion 
engines and auxiliaries, electrical generators, transmitters, 
motors, and other transformers and auxiliaries; water motors, 
wind motors, and compressed-air and hot-air engines; power- 
operated machinery and accessories, and hand tools with acces¬ 
sories for production, hoisting, and construction; mess gear, 
household, laundry, and care-taking apparatus, utensils, and 
accessories; instruments of precision; furniture and furnish¬ 
ings; library, art gallery, museum stocks and exhibits; pleas¬ 
ure-producing machinery and apparatus; transportation equip¬ 
ment such as locomotives, cars, wagons, carts, carriages, sleighs, 
motor vehicles, vehicles pushed, pulled, or carried, bicycles, 
tricycles, wheel chairs, aeroplanes and balloons, buoys and other 
floating aids to navigation, water craft, and vessels of war and 
accessories; war equipment, such as guns and accessories, gun 
mounts and accessories, gun carriages and accessories, and 
caissons and accessories; gun-operating machinery and acces¬ 
sories; ammunition hoists and accessories; torpedo tubes and 


9 


accessories; small arms and accouterments; fire-control appa¬ 
ratus and range finders and accessories; fire-fighting and 
marine life-saving equipment. 

N. Structures. —All expenditures for things not in the state of na¬ 
ture, affixed to land, which have been finally adapted to con¬ 
tinuing use for sheltering, supporting, storing, or protecting 
persons, animals, or things—including embankments, excava¬ 
tions, earthworks, retaining and restraining walls, break¬ 
waters, piers, wharves, ways, dry docks (land and floating) ; 
tunnels, conduits, roads, and roadbeds; dwellings; office, store, 
warehouse, factory, and public buildings; fences, inclosing 
walls, trellises, and pergolas; military structures, such as forts 
and other fortifications; ornamental and commemorative struc¬ 
tures. 

P. Parts. —All expenditures for specifically adapted components 

of supplies, equipment or structures as above defined (L, M, 
and N). 

Q. Live stock. —All expenditures for animals subject to the con¬ 

trol of man, which are possessed for continuing growth, 
productive, scientific, or experimental use while living (ex¬ 
clusive of live animals apprehended or marked for slaughter) — 
including horses, cattle, fowl, stock fish, animals for vaccine 
and antitoxin serum culture, and for vivisection and other 
laboratory use. 

R. Land. —All expenditures for the legal title to land—including pay¬ 

ments of awards and taxed costs in condemnation proceedings 
and for leaseholds and interests in land as purchase price as 
distinguished from current accruals of charges for the use of 
land or interests in land, whether agricultural, timber, mineral 
lands, tide lands, and water rights. 

FOR RIGHTS. 

S. Purchase price expenditures for rights to demand , control , or en¬ 

force action or for rights to act .—All expenditures in the na¬ 
ture of compensation for rights to demand and enforce action 
by or against agents or trustees, debtors, and owners of prop¬ 
erty under contracts of sale, and for rights to act under patent 
and copyrights, and under other privileges granting monopo¬ 
lies—including the purchase of powers; equitable interests; 
corporate shares; notes, bonds, and other choses in action, with 
or without security; options to purchase; patent rights, copy¬ 
rights, franchises, permits, and privileges. 

T. Rents , royalties , and other current-expense accruals for easements , 

franchises , permits , and privileges. —All expenditures on ac¬ 
count of current-expense accruals, as distinguished from pur¬ 
chase price, for rights to possession and use of land, live stock, 
structures, or equipment owned by another, the possession of 
which is to be relinquished at the end of a term specified or 
implied by law, or for the right to use or act under patent 
rights and copyrights, or for easements, franchises, permits, or 
privileges. 


10 


IN SATISFACTION OF OBLIGATIONS. 

V 1. Payment of debt. —All expenditures in the nature of payment or 

delivery of money (or of credit or other things accepted in lieu 
thereof) contracted for in the making of loans or at the time 
of making purchases on credit, except interest (V 2). 

V 2. Interest. —All expenditures in the nature of compensation for 

the deferment of money payments contracted for in the making 
of loans or at the time of making purchases on credit. 

V 3. Refunds. —All expenditures in repayment or refund of the whole 

or part of an amount or amounts previously received or 
credited—including refunds or repayments in connection with 
transactions between departments; transactions with the pub¬ 
lic in the collection of direct taxes, internal revenue, customs, 
or other revenue; sales of land or other property; the repay¬ 
ments of security deposits or other trust funds; or other trans¬ 
actions. 

V 4. Awards and indemnities. —All expenditures for or included in 

awards by the Court of Claims, or by other courts, boards, or 
commissions (other than condemnation awards), and all ex¬ 
penditures made on recommendation of officers of the Govern¬ 
ment as indemnities or on claims advised by the State Depart¬ 
ment to be justly due to foreign nations or to citizens or sub- 
jects thereof, or indemnities for destruction or injury of 
persons or property other than those included under the title 
“ Trade subsidies and bounties ” (X 2). 

FOR INSURANCE AND RESERVE FUNDS. 

W 1. Sinking funds. —All expenditures or reservations the purpose 
of which is to cumulate or set aside funds for the amortiza¬ 
tion or final payment of indebtedness. 

W 2. Insurance and depreciation funds. —All expenditures or re¬ 
servations the purpose of which is to purchase a guaranty of 
indemnity for injury or loss to property or funds, or to pro¬ 
vide against impairment due to deterioration, or to cumulate or 
set aside funds for such purposes. 

FOR GRATUITIES. 

Pensions , retirement salaries , providence , gratuities , and burial 
expenses. —All expenditures to persons, in the nature of gratu¬ 
ities, the purpose of which is to increase the efficiency of those 
in the service, or which are made on other grounds of public 
policy—excepting expenditures in the nature of compensation 
for services currently rendered (A to J), and excepting trade 
subsidies and bounties (X 2). 

Trade subsidies and bounties. —All expenditures to persons, in 
the nature of gratuities, the immediate purpose of which is to 
encourage or promote industry or commerce, including pay¬ 
ments for trade losses guaranteed by the Government, 


X 1. 


X 2. 



11 


FOR LOSSES OF MONEY. 

Y. Losses .—All moneys or amounts lost to the Government by its 

officers or agents, through misappropriation, accident or neg¬ 
ligence, or by theft. 

FOR OTHER PURPOSES. 

Z. Contingencies and miscellaneous .—All expenditures for purposes 

not provided for under the titles above defined or specified. 

ro. Repairs by contract or open-market order. —All expenditures by 
contract or open-market order for materials and parts, labor 
and other things or services incident to the current upkeep of 
furniture and furnishings, equipment and structures, to pro¬ 
vide against reparable deterioration from wear and tear, waste 
and loss. 

po. Production by contract or open-market order. —All expenditures 
by contract or open-market order which may be directly allo¬ 
cated or assigned to manufacturing or other productive func¬ 
tions and activities reported on. 

co. Construction by contract or open-market order .—All expenditures 
by contract or open-market order which may be directely allo¬ 
cate to the building of structures as above defined. 


f 


In order that facility may be given to the classification and to the 
identification of items within established classes of expenditures and 
that the ends of economy may be subserved in the preparation of 
estimates and in the making of summaries and recapitulations thereof, 
the following organization-code numbers will be used to designate 
the several general branches and departments of the Government: 

GENERAL CODE TO DESIGNATE DEPARTMENTS OR BRANCHES OF 

ORGANIZATION. 

01000 Chief Executive. 

02000 Legislature. 

02100 Senate. 

02200 House. 

02300 Joint committees and commissions. 

03000 Judiciary. 

04000 Special executive commissions. 

04100 Tariff Board. 

05000 Civil Service Commission. 

06000 Interstate Commerce Commission. 

07000 District of Columbia. 

08000 Territories. 

09000 Other institutions and establishments. 

09100 Library of Congress. 

09200 National Botanic Garden. 

09300 Government Printing Office. 

09400 Smithsonian Institution. 

10000 Department of State. 

20000 Department of the Treasury. 

30000 Department of War. 

40000 Department of Justice. 

50000 Post-Office Department. 

60000 Department of the Navy. 

70000 Department of the Interior. 

80000 Department of Agriculture. 

90000 Department of Commerce and Labor. 

( 12 ) 


13 


In the preparation and use of numerical symbols or code represent¬ 
ing departmental organization the digits from left to right will have 
the following meaning: 

First digit: Department. 

Second and third digits: Secretary’s office and the bureaus, offices 
or officers reporting directly to the Secretary. 

Fourth and fifth digits: Divisions of bureaus or offices reporting 
through chiefs to bureau a heads. 

Sixth and following digits: Sections or subdivisions reporting to 
division & chiefs. 


a Bureau, as here used, will be understood to mean any branch of the service 
the head of which reports directly to the Secretary, except the chiefs of divisions 
within the Secretary’s office. 

6 Division, as here used, will be understood to mean any branch of the service 
the head of which reports to another, who, in turn, reports directly to the Secre¬ 
tary, and the divisions in the Secretary’s office. 

o 











u PRESIDENT’S INQUIRY IN RE ECONOMY AND EFFICIENCY 


TENTATIVE OUTLINE FOR THE 

RECLASSIFICATION OF OBJECTS OF 
GOVERNMENT EXPENDITURES 

ON A UNIFORM BASIS 


WITH A DETAIL CLASSIFICATION AND CODIFICATION OF 

WAR EQUIPMENT^Q UNs 


CIRCULAR NO. 2 


Submitted for criticism and constructive suggestion 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 
1910 























































AUG i: 1911 

■ 







INSTRUCTION. 


The tentative definition and outline of war equipment, transmitted 
herewith, is submitted to you for criticism and constructive sug¬ 
gestion. The purpose is to develop a uniform classification and a 
numerical code which will not only be exact in its content, but will 
be most highly useful for the entire service. 

In making criticism and olfering constructive suggestion, you will 
please have in mind the application and use of the general outline, 
as well as the supporting details, in relation to the particular problem 
or problems with which you or your office are concerned, whether 
it be the preparation of estimates, operative expense accounting, the 
obtaining of job costs, inspection of deliveries, storekeeping, the 
preparation of inventories and reports, the certification of the in¬ 
voices, the preparation and cataloguing of specifications, the mak¬ 
ing of requisitions, advertising for bids, considering proposals, mak¬ 
ing contracts, issuing orders for purchase either under contracts or 
in the open market, preparing price lists, or what not. 

In any or all of these relations any suggestion which may assist 
in obtaining a basis for the more intelligent consideration of the 
problems of business will be highly appreciated. 

Charles D. Norton, 
Secretary to the President . 


December 2, 1910. 





























i 











■ 






















i 














* 

























Suggested general outline for the classification and codification of govern¬ 
mental expenditures, by objects. 

./ 

A. Salaries, wages, and other compensation for personal service. > 

B. Traveling expenses. 

C. Subsistence (while not in traveling status). 

D. Garage and stable service. 

E. Freight, expressage, drayage, and haulage. 

F. Telegraph, telephone, postal, and commercial messenger service. 

G. Printing, engraving, lithographing, and binding. 

H. Advertising and publication of notices. 

I. Heat, light, and power. 

J. Special and miscellaneous services (other than personal). 

K. Materials. 

L 1. Stationery, drafting, photographic, educational, and scientific 
supplies. 

L 2. Fuel (including burning and illuminating gases, oils, and 
liquids). 

L 3. Mechanics’ supplies. 

L 4. Drugs, chemicals, cleansers, hospital and laboratory supplies. 

L 5. Wearing apparel. 

L 6. Forage. 

L 7. Provisions. 

L 8. War supplies and accessories. 

L 9. Special and miscellaneous supplies. 

M. Equipment (including furniture and furnishings). 

N. Structures. 

P. Parts. 

Q. Live stock. 

R. Land. 

S. Purchase price expenditures for rights—to demand, control, or 

enforce action, or to act. 

T. Rents, royalties, and other current expense accruals for ease¬ 

ments, franchises, permits, and privileges. 

V 1. Payment of debt. 

V 2. Interest. 

V 3. Refunds. 

V 4. Awards and indemnities. 

W 1. Sinking funds. 

W 2. Insurance and depreciation funds. 

X 1. Pensions, retirement salaries, providence, gratuities, subsidies, 
and burial expenses. 

X 2. Trade subsidies and bounties. 

Y. Losses. 

Z. Contingencies and miscellaneous. 

(5) 


DEFINITIONS OF GENERAL CLASSES. 


For the purpose of giving definitions to general terms herein used 
each of the classes of expenditures above indicated will be under¬ 
stood to have the following content: 

FOR PERSONAL SERVICES. 

A. Salaries , wages , and other compensation for personal services .— 

All expenditures for services which are personal in char¬ 
acter a —including regular salaries and wages and pay while on 
leave; holiday, Sunday, and overtime allowances; extra pay 
for special assignments; special-service fees and compensa¬ 
tion, whether rendered under contract or open-market order 
or otherwise, such as professional-service fees, fees for 
technical advice or information, special technical work when 
not paid on a per diem, monthly, or annual salary; bounties, 
for military service, trophies, prizes, awards, badges, and cer¬ 
tificates for personal service; services and allowances com¬ 
bined when settled as one sum; services, including equipment 
when the compensation for furnishing equipment is included 
as one sum in the rate of pay. 

FOR SERVICES OTHER THAN PERSONAL. 

B. Traveling expenses. —All expenditures for services other than per¬ 

sonal 6 the end or purpose of which is to carry persons from 
place to place whether by land or water, or to provide subsist¬ 
ence while in traveling status—including railroad and steam¬ 
boat fares; sleeping and chair car fares; food and lodging 
en route; carriage, coach, cab, horse, and automobile hire, and 
street-car fares en route; per diem allowance en route; mileage; 
tolls, passports, etc. 

C. Subsistence (while not in traveling status). —All expenditures for 

services other than personal the end or purpose of which is to 
provide food and lodging to persons while not in traveling 
status; commutation of rations; commutation of and credit for 
clothing; or expenditures in the nature of “commutation of 
quarters, heat, and light.” 


° Personal services will be understood to mean the act or acts of particular 
natural persons, performed by virtue of a contract of employment (express or 
implied) under the direction and control of another during the period of such 
service the person performing such act or acts having subordinated his skill 
or ability to such direction and control. 

* Services other than personal will be understood to mean the results of acts of 
persons (individual or corporate) who, by contract (express or implied), have 
undertaken to accomplish the same without giving or imparting any right to 
direct or control the abilities or services of the particular person who under 
takes to accomplish the results which are the subjects of contract. 

(6) 



D. Garage and stable service. —All expenditures for services other 

than personal, the end of which is to provide for the storage 
and care of automobiles, horses, and other local transportation 
equipment—including the board and caring for horses; the 
storage of horse vehicles and equipment; horseshoeing; horse 
clipping; veterinary charges, when made as part of a stable 
charge. 

E. Freight , expressage , drayage , and haulage. —All expenditures for 

services other than personal, the end or purpose of which is to 
carry things (other than packages by post or commercial mes¬ 
senger), or deceased persons, from place to place—including 
freight, incidental storage, and demurrage; express other than 
local, with incidentals and storage; drayage and local express; 
the hiring of hearses and funeral cars or conveyances; the 
hiring of teams, horses, carts, and trucks with drivers not on 
the pay roll. 

F. Telegraph , telephone , postal , and commercial messenger service .— 

All expenditures for services other than personal, the end of 
which is to provide artificial means of communication—includ¬ 
ing charges for telegraph, cable, telephone, and commercial 
messenger service, and the transmission of communications or 
packages by post. 

G. Printing , engraving , lithographing , and binding. —All expendi¬ 

tures for services other than personal, the end or purpose of 
which is to imprint or engrave characters on paper, cloth, or 
other material for publication, and to fasten paper or other 
materials together by binding—including the printing, engrav¬ 
ing, lithographing, and binding of laws and ordinances; ex¬ 
ecutive and departmental orders and instructions; printed 
reports, minutes, and proceedings; special printing, engraving, 
and binding; rebinding and mounting. 

H. Advertising and publication of notices. —All expenditures for 

services other than personal, the end or purpose of which is to 
attract attention or notice to a want or desire or to satisfy legal 
requirements—including notices posted or published required 
by law; advertising for bids; advertising for labor and serv¬ 
ices; advertising for sales of property, leases, and special 
privileges; recruiting the Army and Navy, whether by means 
of published or posted notices, exhibits, demonstrations, lec¬ 
tures, or other special features and devices. 

I. Heat , light, and power service. —All expenditures for services other 

than personal, the end or purpose of which is to supply 
heat, light, or power (including electricity), as distinguished 
from materials and supplies adapted to heat, light, and power 
production. • 

J. Special and miscellaneous services ( other than personal). —All 

expenditures for services by contract or open-market order, 
other than personal, which can not be allocated or made a 
direct charge to any of the specific classes above defined—in¬ 
cluding charges for storage of things not en route; rewards 
for detection; commissions other than for personal services; 
court and other public office fees; charges for collection and 
exchange; tuition of students, etc. 



8 


FOR THINGS. 


K. Materials. —All expenditures for things not in the state of nature,® 
and not fixed to the land or to structures, which have not been 
finally adapted to a particular use, and which require further 
modification or combination in order to adapt them to final 
continuing use or for consumption—including raw materials, 
such as metal-bearing ores and reduced metals; crude mineral 
oil and asphalt ; minerals other than metal-bearing or bitumi¬ 
nous; standing timber and logs; fiber, sap, and dye produc¬ 
ing plants, and other vegetable crudities and unadapted 
vegetable products, including wheat, barley, and rye; un¬ 
adapted animal products; also generally but not specifically 
or finally adapted materials such as metals in sheets, bars, 
rods, wires, pipes, threads, etc.; carpenters’ and cabinetmak¬ 
ers’ hardware; nails, bolts, rivets, screws, chain, wire-rope and 
cable; paints, oils, pigments, fillers, lacquers, and other protec¬ 
tive coatings; mineral pitch, prepared asphalt, and other gener¬ 
ally adapted bituminous products; terra cotta, brick, dimen¬ 
sion stone, plaster, concrete, and other generally adapted non- 
metallic mineral products; lumber; textiles, knitted and netted 
goods, felt and fibrous cordage; leather and dressed pelts. 

L 1. Stationery, drafting , photographic , educational , and scientific 
supplies . b —All expenditures for things not in the state of 
nature and not fixed to land or structures, which have been 
finally adapted for office or desk or for photographic, educa¬ 
tional, or scientific use, and which when used are actually or 
constructively consumed—including blank and printed record 
books; blank distinctive, water-marked, and special paper, 
and paper boards; handwriting instruments and devices; 
adhesives and fasteners; desk accessories; supplies for type¬ 
writers and other mechanical office devices; rubber stamps; 
drafting supplies; sensitized photographic papers and cloths, 
emulsions, developers, hardeners, fixers, washers, driers, mounts, 
plates, films; pamphlets, magazines, newspapers, clippings, 
directories, commercial reference books, and other printed mat¬ 
ter intended for current use and not for library purposes; text¬ 
books (for students, not purchased for library), test tubes, 
litmus paper, filter paper. 

L 2. Fuel ( including turning and illuminating gases , oils , and 
liquids) .—All expenditures for things not in the state of nature 
and not fixed to land or structures, which have been finally 
adapted to heat, light, and power production—including coal, 
coke, wood, charcoal, kindling, burning and illuminating oils, 
liquids, and gases. 


“Things not in the state of nature will be understood to mean all things which 
have been severed or extracted from their natural location or setting, and all 
animals slaughtered or apprehended for slaughter, for the purpose of making 
them available for use. 

6 Supplies will be understood to mean all things not in the state of nature and 
not fixed to land or structures which have been finally adapted to a particular 
use for sustaining life or for the production of mechanical energy or power, or 
for other purposes, but which when applied to the use for which they are 
adapted are consumed, i. e., do not remain in the same form for continuing use. 



9 


L 3. Mechanics' supplies. —All expenditures for things not in the 
state of nature and not fixed to land or structures, which have 
been finally adapted for the reduction of friction and attrition 
or for polishing or abrading not included under cleansing sup¬ 
plies (X. 4), and which when applied to use are consumed— 
including lubricating oils, grease and graphite, lubricating 
compounds and mixtures, waste, carborundum, pumice, rotten- 
stone, emery and sand paper, and other polishing and abrad¬ 
ing supplies. 

L 4. Drugs , chemicals , cleansers , hospital and laboratory supplies .— 
All expenditures for things not in the state of nature and not 
fixed to land or structures which have been finally adapted for 
use as medicine, or as chemical agents or reagents, or as 
cleansers, antiseptics, disinfectants, deodorizers, perfumes, or 
other supplies for toilet purposes, and which when applied to 
use are consumed—including vegetable and animal drugs and 
extracts, acids, chemicals and chemical salts, chemically pure 
metals; prescriptions and compounds; proprietary medicines; 
gases (not included under Fuel) ; soaps and other chemical 
cleansers and cleaning preparations; antiseptics, disinfectants, 
and deodorizers; surgical lint, absorbent cotton, bandages, 
gauze, and other absorbent and bandage supplies; trusses, 
braces, suspensories, crutches, artificial limbs, eyes, teeth, ear 
trumpets; rubber tubing and bandages, douches, and other 
ward, clinical, or laboratory supplies; perfumeries and other 
toilet supplies. 

L 5. Wearing apparel. —All expenditures for things not in the state 
of nature and not fixed to land or structures which have been 
finally adapted to human use for body covering, protection, 
and comfort, excluding hospital and laboratory supplies (L 4) 
and furnishings (M)—including suits and parts of suits and 
outer body coverings; head coverings and accessories; hand 
coverings; foot coverings and accessories; collars, cuffs, shirts 
and shirt waists; underwear; pocket linen, neckties, belts, cor¬ 
sets, suspenders, garters; athletic wearing apparel and miscel¬ 
laneous wearing apparel. 

L 6. Forage. —All expenditures for things not in the state of nature 
and not fixed to land or structures which have been finally 
adapted for the feeding and bedding of animals and which 
when applied to use are consumed (other than those things 
above classified as provisions)—including roughage, such as 
timothy, alfalfa and clover, and wfild hay, corn fodder, straw, 
and coarse grasses; grains (other than wheat, barley, and rye) ; 
other concentrated feed, such as meal and crushed grains, oil 
cake, and other by-products used for forage; succulent feed, 
such as ensilage, rutabagas, mangels, and forage beets; rock 
salt; mixed feed; bedding. 

L7. Provisions. —All expenditures for things not in the state of 
nature and not fixed to land or structures which have been 
finally adapted to use for human food—including farinaceous 
and other bakery foods; fresh meats, fish, game, and fowl (in¬ 
cluding animals apprehended or marked for slaughter) ; canned 
and preserved meats, fish, game, and fowl; fresh fruits and 

68052—10-2 


10 


vegetables; canned and preserved foods; fresh dairy products 
and eggs; coffee, chocolate, tea, spices, and flavorings; sugar, 
molasses, sirups; and other foods for human consumption. 

L 8. War supplies and explosives .—All expenditures for things not 
in the state of nature and not fixed to land or structures, which 
have been finally adapted for use in war, and which when ap¬ 
plied to the use for which they have been adapted are con¬ 
sumed, and all explosives adapted to signaling, and to extrac¬ 
tive, scientific, educational, or recreational purposes-—including 
black and smokeless powder, dynamite, nitroglycerin, lyddite, 
fulminates, fuses, percussion caps, cartridges, shells, projec¬ 
tiles, hand grenades and other war missiles, marine torpedoes, 
signal rockets and torpedoes, and pyrotechnic supplies. 

L 9. Special and miscellaneous supplies .—All expenditures for things 
not in the state of nature and not fixed to land or structures, 
other than those classified above, which have been finally 
adapted for use and which when applied to the use for which 
they have been adapted are actually or constructively con¬ 
sumed—including recreational supplies, such as baseballs, ten¬ 
nis balls, golf balls, rackets, clubs, foils, body protectors and 
guards, and other small and unattached sporting goods; water 
and ice; weather bureau supplies; meat inspection supplies; 
testing and experimenting supplies; household and cleaners’ 
supplies, not included under cleansers (L 4) and under house¬ 
hold utensils (M). 

M. Equipment (including furniture and furnishings). —All expendi¬ 
tures for things not in the state of nature, fixed or not fixed to 
land, which have been finally adapted to continuing use for 
the generation, transmission, and utilization of electrical or 
mechanical power; and all things not in the state of nature not 
fixed to the land which have been finally adapted to continu¬ 
ing use for increasing the efficiency or economy of human ef¬ 
fort, or for sheltering, supporting, storing, carrying, or pro¬ 
tecting persons, animals, or things (excluding items classified 
under structures)—including harness and other trappings 
for power animals; heating, lighting, and power equipment, 
such as stoves and air-heating apparatus, water heaters, steam 
generators, steam engines and auxiliaries, internal-combustion 
engines and auxiliaries, electrical generators, transmitters, 
motors, and other transformers and auxiliaries; water motors, 
wind motors, and compressed-air and hot-air engines; power- 
operated machinery and accessories, and hand tools with acces¬ 
sories for production, hoisting, and construction; mess gear, 
household, laundry, and care-taking apparatus, utensils, and 
accessories; instruments of precision; furniture and furnish¬ 
ings; library, art gallery, museum stocks and exhibits; pleas¬ 
ure-producing machinery and apparatus; transportation equip¬ 
ment, such as locomotives, cars, wagons, carts, carriages, sleighs, 
motor vehicles, vehicles pushed, pulled, or carried, bicycles, 
tricycles, wheel chairs, aeroplanes and balloons, buoys and other 
floating aids to navigation, water craft, and vessels of war and 
accessories; war equipment, such as guns and accessories, gun 
mounts and accessories, gun carriages and accessories, and 


11 


caissons and accessories; gun-operating machinery and acces¬ 
sories; ammunition hoists and accessories; torpedo tubes and 
accessories; small arms and accouterments; fire-control appa¬ 
ratus and range finders and accessories; fire-fighting and 
marine life-saving equipment. 

N. Structures. —All expenditures for things not in the state of na¬ 
ture, affixed to land, which have been finally adapted to con¬ 
tinuing use for sheltering, supporting, storing, or protecting 
persons, animals, or things—including embankments, excava¬ 
tions, earthworks, retaining and restraining walls, break¬ 
waters, piers, wharves, ways, dry docks (land and floating) ; 
tunnels, conduits, roads, and roadbeds; dwellings; office, store, 
warehouse, factory, and public buildings; fences, inclosing 
walls, trellises, and pergolas; military structures, such as forts 
and other fortifications; ornamental and commemorative struc¬ 
tures. 

P. Parts. —All expenditures for specifically adapted a components 

of supplies, equipment or structures as above defined (L, M, 
and N). 

Q. Live stock. —All expenditures' for animals subject to the con¬ 

trol of man, which are possessed for continuing growth, 
productive, scientific, or experimental use while living (ex¬ 
clusive of live animals apprehended or marked for slaughter) — 
including horses, cattle, fowl, stock fish, animals for vaccine 
and antitoxin serum culture, and for vivisection and other 
laboratory use. 

R. Land. —All expenditures for land or interests in land, in the 

nature of capital outlays as distinguished from current-expense 
accruals—including costs of acquisition (by purchase at pri¬ 
vate sale or by condemnation proceedings) of freeholds, long¬ 
time leases, easements, and water rights. 

FOR RIGHTS. 

S. Purchase price expenditures for rights to demand ', control , or en¬ 

force action or for rights to act. —All expenditures in the na¬ 
ture of compensation for rights to demand and enforce action 
by or against agents or trustees, debtors, and owners of prop¬ 
erty under contracts of sale, and for rights to act under patent 
rights and copyrights, and under other privileges granting mo¬ 
nopolies—including the purchase of powers; equitable interests; 
corporate shares; notes, bonds, and other clioses in action, with 
or without security; options to purchase; patent rights, copy¬ 
rights, franchises, permits, and privileges. 

T. Rents , royalties , and other current-expense accruals for easements , 

franchises , permits , and privileges. —All expenditures on ac¬ 
count of current-expense accruals, as distinguished from pur¬ 
chase price, for rights to possession and use of land, live stock, 
structures, or equipment owned by another, the possession of 
which is to be relinquished at the end of a term specified or 


a Specifically adapted , as distinguished from “ finally adapted,” will be under¬ 
stood to mean the adaptation of a thing to a specific use as a part, but requiring 
further adaptation, as assembling, before it can be utilized. 





12 


t 


implied by law, or for the right to use or act under patent 
rights and copyrights, or for easements, franchises, permits, or 
privileges. 

IN SATISFACTION OF OBLIGATIONS. 

V 1 . Payment of debt .—All expenditures in the nature of payment or 

delivery of money (or of credit or other things accepted in lieu 
thereof) contracted for in the making of loans or at the time 
of making purchases on credit, except interest (V 2). 

V 2. Interest. —All expenditures in the nature of compensation for 

the deferment of money payments contracted for in the making 
of loans or at the time of making purchases on credit. 

V 3. Refunds .—All expenditures in repayment or refund of the whole 

or part of an amount or amounts previously received or 
credited—including refunds or repayments in connection with 
transactions between departments; in connection with trans¬ 
actions with the public, such as collection of direct taxes, 
internal revenue, customs, or other revenue; sales of land or 
other property; repayments of security deposits or other trust 
funds; or other transactions. 

V4. Awards and indemnities— All expenditures for or included in 
awards by the Court of Claims, or by other courts, boards, or 
commissions (other than condemnation awards), and all ex¬ 
penditures made on recommendation of officers of the Govern¬ 
ment as indemnities or on claims advised by the State Depart¬ 
ment to be justly due to foreign nations or to citizens or sub¬ 
jects thereof, or indemnities for destruction or injury of 
persons or property other than those included under the title 
“Trade subsidies and bounties” (X 2). 

FOR INSURANCE AND RESERVE FUNDS. 

W 1. Sinking funds. —All expenditures or reservations the purpose 
of which is to cumulate or set aside funds for the amortiza¬ 
tion or final payment of indebtedness. 

W 2. Insurance and depreciation funds .—All expenditures or res¬ 
ervations the purpose of which is to purchase a guaranty of 
indemnity for injury or loss to property or funds, or to pro¬ 
vide against impairment due to deterioration, or to cumulate or 
set aside funds for such purposes. 

FOR GRATUITIES. 

X 1 . Pensions , retirement salaries , providence , gratuities , and burial 
expenses. —All expenditures to persons, in the nature of gratu¬ 
ities, the purpose of which is to increase the efficiency of those 
in the service, or which are made on other grounds of public 
policy—excepting expenditures in the nature of compensation 
for services currently rendered (A to J), and excepting trade 
subsidies and bounties (X 2). 

X 2. Trade subsidies and bounties. —All expenditures to persons, in 
the nature of gratuities, the immediate purpose of which is to 
encourage or promote industry or commerce, including pay- 

i ments for trade losses guaranteed by the Government. 



13 


FOR LOSSES OF MONEY. 

Y. Losses. —All moneys or amounts lost to the Government by its 

officers or agents, through misappropriation, accident or neg¬ 
ligence, or by theft. 

FOR OTHER PURPOSES. 

Z. Contingencies and miscellaneous. —All expenditures for purposes 

not provided for under the titles above defined or specified, 
excepting repairs by contract or open-market order, and ex¬ 
cepting expenditures for the production of equipment and for 
the construction of buildings and public works in process, 
provided for below. 

ro. Repairs by contract or open-market order .—All expenditures by 
contract or open-market order for materials and parts, labor 
and other things or services incident to the current upkeep of 
furniture and furnishings, equipment and structures, to pro¬ 
vide against reparable deterioration from wear and tear, waste 
and loss. 


Suggested General Classification of Equipment to be Used as a 

Basis for Codification. 

The suggested subclassification of war equipment and the detail 
classification and numbering of guns of the Department of the Navy 
follow: 

M. Equipment. a 


M 1. Heat, light, power, and electrical equipment (for the produc¬ 
tion of heat, light, power, and electricity, and for refriger¬ 
ation, and for the direct utilization of electricity and the 
transmission of power). 

M 2. Production and construction equipment. 

M 3. Pumping, air compressing, and ventilating equipment (other 
than that auxiliary to an engine or machine). 

M 4. Transporting and conveying equipment (including contain¬ 
ing equipment specifically adapted to transporting and con¬ 
veying and vessels of war). 

M 5. Furniture and furnishings and other equipment for conven¬ 
ience and comfort. 

M 6. Caretaking and property and life-preserving equipment. 

M 7. Educational, scientific, and recreational equipment. 

M 8. War equipment (excepting vessels of war). 

M 9. Special and miscellaneous. 


a For definition see Class “ M,” page 10. 

( 14 ) 





15 




Subclassification of War Equipment Suggested by the Com¬ 
mittee on Economy and Efficiency of the Department of thb 
Navy. 

M 8. War equipment (excepting vessels of war).® 

M 81. Guns and accessories (complete mechanism). 

M 82. Gun mounts and accessories. 

M 83. Gun carriages and accessories (including caissons and acces¬ 
sories). 

M 84. Gun-operating machinery and accessories. 

M 85. Ammunition hoists and accessories. 

M 86. Torpedo tubes and accessories. 

M 87. Small arms and accouterments. 

M 88. Fire-control apparatus and accessories (including range 
finders). 

M 89. Special and miscellaneous. 

®A11 equipment which has been finally adapted for war excepting vessels 
of war, these being considered as a part of the general title, “ Transportation 
equipment, including vessels of war.” (M 4.) 





16 


Suggested Classification and Numbering of All Guns (Mounted) 
for War Purposes Used in the United States Navy. 

[Prepared by Lieut. William L. Pryor, by direction of the committee on economy and 

efficiency in the Department of the Navy.] 

M .81. Guns and accessories (complete mechanism) other than small 
arms. a 

M .811. Machine guns. 

M .812. Minor caliber breech-loading rifles. 

M .813. Large caliber breech-loading rifles. 

M .814. 

M .815. 

M .816. 

M .817. 

M .8181 

M .819. Special and miscellaneous guns and accessories (includes 
muzzle-loading and other obsolete guns). 


a All war equipment which has been adapted to the launching, hurling, and 
direction of projectiles or missiles of war by use of power generated by internal 
combustion of explosives or by expansion of compressed air or gases, and which 
equipment by reason of its w T eight or construction requires mounting for use or 
transportation or for both. 



17 


M .811. Machine guns. a 

1-00 Automatic machine gun and rifle, caliber 30, model 1009. 

6- 00 Colt automatic, 6 mm. 

7- 00 Colt automatic, caliber 30. 

7-01 Colt automatic, caliber 30, Mark I. 

7-02 Colt automatic, caliber 30, Mark II. 

7-03 Colt automatic, caliber 30, Mark III. 

7- 04 Colt automatic, caliber 30, Mark IV. 

8- 00 Gatling guns. 

8-01 Gatling guns, Mark I. 

8-02 Gatling guns, Mark II. 

8- 03 Gatling guns, Mark III. 

9- 00 Miscellaneous machine guns. 


° Guns having a caliber adapted to small arms ammunition and which are 
equipped with power-operated mechanism for rapid firing, the power for operat¬ 
ing the mechanism being obtained from powder pressure generated in bore of 
gun, or from recoil of guns, or by mechanism operated by a crank turned by 
hand; the mechanism in its full cycle of operation tiring, ejecting the empty 
cartridge case, and reloading automatically. 



18 


M .812. Minor caliber breech-loading rifles. a 
1-00 1-pounder guns. 

1-01 1-pounder guns, Mark I. 

1-01-1 1-pounder guns, Mark I, Model 1. 
1-02 1-pounder guns, Mark II. 

1-02-1 1-pounder guns, Mark II, Model 1. 
1-03 - 1-pounder guns, Mark III. 

1-04 1-pounder guns, Mark IV. 

1-05 1-pounder guns, Mark V. 

1-05-1 1-pounder guns, Mark Y, Model 1. 
1-06 1-pounder guns, Mark VI. 

1-07 1-pounder guns, Mark VII. 

1-08 1-pounder guns, Mark VIII. 

1-09 1-pounder guns, Mark IX. 

3-00 3-pounder guns. 

3-00-1 3-pounder guns, Hotchkiss, French. 
3-01 3-pounder guns, Mark I. 

3-01-1 3-pounder guns, Mark I, Model 1. 
3-02 3-pounder guns, Mark II. 

3-03 3-pounder guns, Mark III. 

3-04 3-pounder guns, Mark IV. 

3-04-1 3-pounder guns, Mark IV, Model 1. 
3-05 3-pounder guns, Mark V. 

3-06 3-pounder guns, Mark YI. 

3-07 3-pounder guns, Mark VII. 

3-08 3-pounder guns, Mark VIII. 

3-09 3-pounder guns, Mark IX. 

3-10 3-pounder guns, Mark X. 

3-10-1 3-pounder guns, Mark X, Model 1. 
3-10-2 3-pounder guns, Mark X, Model 2. 
3-11 3-pouncler guns, Mark XI. 

3-11-1 3-pounder guns, Mark XI, Model 1. 

3-12 3-pounder guns, Mark XII. 

3-13 3-pounder guns, Mark XIII. 

3-14 3-pounder guns, Mark XIY. 


° Guns using ammunition of larger size than small-arms ammunition; the 
ammunition being limited to shells weighing 1, 3, and 6 pounds; the guns in 
same cases being automatic, in others semiautomatic, and in others requiring 
each operation of loading and removing empty cartridge case to be performed 
by hand; automatic guns using the recoil to open the breech, to eject empty 
cartridge case, to reload, and to close the breech ready for the next shot; the 
automatic type being confined at present to 1-pounder guns; the semiautomatic 
guns using the recoil to open the breech and to eject the empty cartridge case 
only, the remainder of the operation being performed by hand. 






19 


M .81‘2. Minor caliber breech-loading rifles —Continued. 
6-00 6-pounder guns. 

6-01 6-pounder guns, Mark I. 

6-01-1 6-pounder guns, Mark I, Model 1. 

6-01-2 6-pounder guns, Mark I, Model 2. 

6-02 6-pounder guns, Mark II. 

6-03 6-pounder guns, Mark III. 

6-04 6-pounder guns, Mark IV. 

6-04—1 6-pounder guns, Mark IV, Model 1. 

6-05 6-pounder guns, Mark V. 

6-06 6-pounder guns, Mark VI. 

6-07 6-pounder guns, Mark VII. 

6-08 6-pounder guns, Mark VIII. 

6-09 6-pounder guns, Mark IX. 

6-09-1 6-pounder guns, Mark IX, Model 1. 
6-09-2 6-pounder guns, Mark IX, Model 2. 

6-10 6-pounder guns, Mark X. 

6-11 6-pounder guns, Mark XT. 


M .813. Large caliber breech-loading iifies. a 

3-00 3-inch guns. 

3-01 3-inch guns, Mark I. 

3-01-1 3-inch guns, Mark I, Model 1. 

3-02 3-inch guns, Mark II. 

3-02-1 3-inch guns, Mark II, Model 1. 

3-03 3-inch guns, Mark III. 

3-03-1 3-inch guns, Mark III, Model 1. 

3-03-2 3-inch guns, Mark III, Model 2. 

3-03-3 3-inch guns, Mark III, Model 3. 

3-03-4 3-inch guns, Mark III, Model 4. 

3-04 3-inch guns, Mark IV. 

3-05 3-inch guns, Mark Y. 

3-05-1 3-inch guns, Mark V, Model 1. 
3-06 3-inch guns, Mark YI. 

3-07 3-inch guns, Mark VII. 

3- 08 3-inch guns, Mark VIII. 

4- 00 4-inch guns. 

4-01 4-inch guns, Mark I. 

4-01-1 4-inch guns, Mark I. Model 1. 

4-02 4-inch guns, Mark II. 

4-03 4-inch guns, Mark III. 

4-03-1 4-inch guns, Mark III, Model 1. 

4-03-2 4-inch guns, Mark III, Model 2. 

4-03-3 4-inch guns, Mark Ilf, Model 3. 

4-04 4-inch ffuns, Mark IV. 

4-05 4-inch guns, Mark V. 

4-06 4-inch guns, Mark VI. 

4-07 4-inch guns, Mark VII. 

4-08 4-inch guns, Mark VIII. 

4-7-00 4-inch guns. 

4-7-01 4-inch guns, Mark I. 

4-7-02 4-inch guns, Mark II. 

4-7-03 4-inch guns, Mark III. 

4- 7-04 4-inch guns, Mark IV. 

5- 00 5-inch guns. 

5-01 5-inch guns, Mark I. 

5-01-1 5-inch guns, Mark I, Model 1. 

5-02 5-inch guns, Mark II. 

5-02-1 5-inch guns, Mark II, Model 1. 


a Guns the caliber of which is specified by the diameter of the shell, in 
inches; a 3-inch gun being one with a bore 3 inches in diameter, and using a 
shell, the actual diameter of which is a few thousandths of an inch less than 
3 inches in order that it may pass freely through the bore; the weight of the 
shell of various calibers varying approximately in proportion to one-half the 
cube of its diameter (a 6-inch shell weighing 105 pounds, approximately one- 
half the cube of 6, or 216) ; the majority of these guns requiring all the oper¬ 
ations of loading to be performed by hand; some of the 3-inch semiautomatic 
guns, however, utilizing the recoil to open the breech and eject the empty cart¬ 
ridge case, the remainder of the operation being performed by hand. 




21 


M .813. Large caliber breecli-loading rifles —Continued. 

5-02-2 5-inch guns, Mark II, Model 2. 

5-02-3 5-inch guns, Mark II, Model 3. 

5-02-4 5-inch guns, Mark II, Model 4. 

5-02-5 5-inch guns, Mark II, Model 5. 

5-02-6 5-inch guns, Mark II, Model 6. 

.5-03 5-inch guns, Mark III. 

5-03-1 5-incli guns, Mark III, Model 1. 

5-04 5-inch guns, Mark IV. 

5-04-1 5-inch guns, Mark IV, Model 1. 

5-05 5-inch guns, Mark V. 

5-06 5-inch guns, Mark VI. 

5-06-1 5-inch guns, Mark VI, Model 1. 

5-06-2 5-inch guns, Mark VI, Model 2. 

5-07 5-inch guns, Mark VII. 

5- 08 5-inch guns, Mark VIII. 

6- 00 6-inch guns. 

6-01 6-inch guns, Mark I. 

6-02 6-inch guns, Mark II. 

6-02-1 6-inch guns, Mark II, Model 1. 

6-02-2 6-inch guns, Mark II, Model 2. 

6-02-3 6-inch guns, Mark II, Model 3. 

6-03 6-inch guns, Mark III. 

6-03-1 6-inch guns, Mark III, Model 1. 

6-03-2 6-inch guns, Mark III, Model 2. 

6-03-3 6-inch guns, Mark III, Model 3. 

6-03-4 6-inch guns, Mark III, Model 4. 

6-03-5 6-inch guns, Mark III, Model 5. 

6-03-6 6-inch guns, Mark III, Model 6. 

6-03-7 6-inch guns, Mark III, Model 7. 

6-03-8 6-inch guns, Mark III, Model 8. 

6-03-9 6-inch guns, Mark III, Model 9. 

6-04 6-inch guns, Mark IV. 

6-04-1 6-inch guns, Mark IV, Model 1. 

6-04-2 6-inch guns, Mark IV, Model 2. 

6-04-3 6-inch guns, Mark IV, Model 3. 

6-04-4 6-inch guns, Mark IV, Model 4. 

6-04-5 6-inch guns, Mark IV, Model 5. 

6-04-6 6-inch guns, Mark IV, Model 6. 

6-04-7 6-inch guns, Mark IV, Model 7. 

6-04-8 6-inch guns, Mark IV, Model 8. 

6-05 6-inch guns, Mark V. 

6-06 6-inch guns, Mark VI. 

6-07 6-inch guns, Mark VII. 

6-08 6-inch guns, Mark VIII. 

6-08-1 6-inch guns, Mark VIII, Model 1. 
6-08-2 6-inch guns, Mark VIII, Model 2. 

6-09 6-inch guns, Mark IX. 

6- 10 6-inch guns, Mark X. 

7- 00 7-inch guns. 

7-01 7-inch guns, Mark I. 

7-02 7-inch guns, Mark II. 



22 


M .818. Large caliber bveecli-loading rifles —Continued. 
8-00 8-inch guns. 

8-01 8-inch guns, Mark I. 

8-01-1 8-inch guns, Mark I, Model 1. 

8-02 8-inch guns, Mark II. 

8-02-1 8-inch guns, Mark II, Model 1. 

8-03 8-inch guns, Mark III. 

8-03-1 8-inch guns, Mark LLL, Model 1. 

8-03-2 8-inch guns, Mark III, Model 2. 

8-03-3 8-inch guns, Mark III, Model 3. 

8-03-4 8-inch guns, Mark III, Model 4. 

8-04 8-inch guns, Mark IV. 

8-04-1 8-inch gnns, Mark IV, Model 1. 

8-04-2 8-inch guns, Mark IV, Model 2. 

8-04-3 8-inch guns, Mark IV, Model 3. 

8-04-4 8-inch guns, Mark IV, Model 4. 

8-04-5 8-inch guns, Mark IV, Model 5. 

8-04-6 8-inch guns, Mark IV, Model 6. 

8-04-7 8-inch guns, Mark IV, Model 7. 

8-04-8 8-inch guns, Mark IV, Model 8. 

8-04-9 8-inch guns, Mark IV, Model 9. 

8-05 8-inch guns, Mark V. 

8-06 8-inch guns, Mark VI. 

8-06-1 8-inch guns, Mark VI, Model 1. 

10-00 10-inch guns. 

10-01 10-inch guns, Mark I. 

10-01-1 10-inch guns, Mark I, Model 1. 

10-01-2 10-inch guns, Mark I. Model 2. 

10-01-3 10-inch guns, Mark I, Model 3. 

10-02 10-inch guns, Mark II. 

10-02-1 10-inch guns, Mark II, Model 2. 

10-02-2 10-inch guns, Mark I, Model 2. 

10-03 10-inch guns, Mark III. 

12-00 12-inch guns. 

12-01 12-inch guns, Mark I. 

12-02 12-inch guns, Mark II. 

12-03 12-inch guns, Mark III. 

12-03-1 12-inch guns, Mark III, Model 2. 

12-03-2 12-inch guns, Mark III, Model 2. 

12-03-3 12-inch guns, Mark III, Model 3. 

12-04 12-inch guns, Mark IV. 

12-05 12-inch guns, Mark V. 

12-06 12-inch guns, Mark VI. 

12- 07 12-inch guns, Mark VII. 

13- 00 13-inch guns. 

13-01 13-inch guns, Mark I. 

13-01-1 13-inch guns, Mark I, Model 1. 

13-02 13-inch guns, Mark II. 

13-02-1 13-inch guns, Mark II, Model 1. 

13- 02-2 13-inch guns, Mark II, Model 2. 

14- 00 14-inch guns. 

14-01 14-inch guns, Mark I. 

14-02 14-inch guns, Mark II. 

O 



PRESIDENT’S INQUIRY IN RE ECONOMY AND EFFICIENCY 


TENTATIVE OUTLINE AND NUMBERING 
OF THE SEVERAL BUREAUS AND 
DIVISIONS OF THE NAVY 


PREPARED BY THE COMMITTEE ON ECONOMY AND EFFICIENCY 
OF THE DEPARTMENT OF THE NAVY 


CIRCULAR NO. 3 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1911 















































. 











































































. 































































































INSTRUCTION 


The tentative outline and numbering of the several bureaus and 
divisions of the Navy, submitted herewith, has been prepared by 
the committee on economy and efficiency of the Department of the 
Navy. This is submitted for your information, thinking that it 
will materially assist to have before each committee the results of all 
others on the same general problem. 

Any criticism or constructive suggestions will be gladly received, 

Charles D. Norton, 

Secretary to the President. 

December 3, 1910. 

6903—11 ' ( 3 ) 

































h-u ■ ' . - ■ nT 

■ . y 

. i 

• * 

4 

r 

. • • •• • 
n- 
















































GENERAL KEY TO ORGANIZATION OF THE DEPARTMENT OF 

THE NAVY . 1 


6-00-00 DEPARTMENT OF THE NAVY. 

6-10-00 Secretary of the Navy. 

6-20-00 Bureaus of the Department of the Navy ancl Headquar¬ 
ters, Marine Corps. 

6-30-00 Navy yards and stations, coaling plants, magazines, in¬ 
spection districts, purchasing pay and disbursing offices, 
wireless stations, and branch hydrographic offices. 

6-40-00 Hospitals, schools, target ranges, camps for instruction, 
and recruiting stations. 

6-50-00 The Fleet (includes all vessels borne on Navy Register). 

6-60-00 Marine Corps. 

6-70-00 Naval Militia. 

6-80-00 

6-90-00 Miscellaneous. 


1 Following the general instruction on page 13 of the “Outline for the Reclassifica¬ 
tion of Estimates of Government Expenditures on a Uniform Basis” (Circular No. 1 
of this series), in the preparation of the numerical symbols or code representing 
departmental organization, the digits from left to right have the following meaning: 

First digit: Department. 

Second and third digits: Secretary’s office and the bureaus, offices or officers report¬ 
ing directly to the Secretary. 

Fourth and fifth digits: Divisions of bureaus or offices reporting through chiefs to 
bureau heads, it being understood that “bureau,” as here used, is understood to mean 
any branch of the service the head of which reports directly to the Secretary, whereas 
* ‘ division ’ ’ is understood to mean any branch of the service the head of which reports 
to another, who in turn reports directly to the Secretary. 

By following this general definition it is to be observed that the greater number 
of offices or officers reporting directly to the Secretary are outside of the central admin¬ 
istrative office. For this reason the “bureaus of the Department of the Navy and 
headquarters of the Marine Corps ” are given one thousand numbers, the other num¬ 
bers being reserved for outside operations, the same being grouped as above indicated. 

( 5 ) 






6 


DETAIL CLASSIFICATION AND CODIFICATION OF ORGANIZATION UNITS 

FOR THE DEPARTMENT OF THE NAVY. 

6-10-00 Secretary of the Navy (office of). 

6-10-10 Secretary. 

6-10-11 Chief clerk. 

6-10-20 Assistant Secretary. 

6-10-30 Aids. 

6-10-31 Aid for Operations. 

6-10-32 Aid for Personnel. 

6-10-33 Aid for Material. 

6-10-34 Aid for Inspections. 

6-10-40 Boards and inspection service. 

6-10-41 General board. 

6-10-42 Board of Inspection and Survey for Ships. 

6-10-43 Board of Inspection for Shore Stations. 

6-10-44 Special inspecting officers. 

6-10-45 Naval Examining Board. 

6-10-46 Naval Betiring Board. 

6-10-47 Inspector of target practice. 

6-10-50 Judge Advocate General. 

•6-10-60 Solicitor. 

6-10-70 Office of Naval Intelligence. 

6-10-71 Naval attache, London. 

6-10-72 Naval attache, Paris and St. Petersburg. 

6-10-73 Naval attache, Berlin. 

6-10-74 Naval attache, Borne and Vienna. 

6-10-75 Naval attach^, Tokyo and Pekin. 

6-10-76 Naval attach^, Buenos Aires, Bio Janeiro, and Santiago. 
6-10-80 Naval War College. 

6-10-90 Library. 

6-10-91 Office of Nava] Becords of the Bebellion. 


7 


6 20—00 Bureaus of the Department of the Navy and Head¬ 
quarters, Marine Corps. 

6 - 21-00 Bureau of Yards and Docks. 

6-21-10 Chief of bureau (office of). 

6-23-00 Bureau of Navigation. 

6-23-10 Chief of bureau (office of). 

6-23-20 Naval Auxiliaries (office of). 

6-23-30 Hydrographic Office. 

6-23-40 Naval Observatory. 

6-23-50 Nautical Almanac Office. 

6-23-60 Compass Office. 

6-24-00 Bureau of Ordnance. 

6-24-10 Chief of bureau (office of). 

6-25-00 Bureau of Construction and Repair. 

6-25-10 Chief of bureau (office of). 

6-26-00 Bureau of Steam Engineering. 

6-26-10 Chief of bureau (office of). 

6-27-00 Bureau of Supplies and Accounts. 

6-27-10 Chief of bureau (office of). 


6-28-00 Bureau of Medicine and Surgery. 
6-28-10 Chief of bureau (office of). 


6-29-00 Headquarters Marine Corps, 

6-29-10 Major General Commandant (office of). 


6-29-30 

6-29-31 

6-29-40 

6-29-41 

6-29-42 

6-29-43 

6-29-44 


Adjutant and Inspector’s Department. 

Officer in charge (office of). 

Inspection Districts. 

North Atlantic inspection district, Philadelphia, Pa. 
Pacific inspection district, San Francisco, Cal. 
Philippines inspection district, Manila, P. I. 

South Atlantic inspection district, Norfolk, Va. 


6-29-50 

6-29-51 

6-29-52 

6-29-53 

6-29-54 

6-29-55 


Quartermaster’s Department. 
Officer in charge (office of). 
Depots of supplies. 
Manila, P. I. 
Philadelphia, Pa. 

San Francisco, Cal. 


6-29-60 

6-29-61 

6-29-62 

6-29-63 

6-29-64 

6-29-65 


Paymaster’s Department. 

Officer in charge (office of). 

Assistant paymasters (offices of). 
Manila, P. I. 

New York, N. Y. 

San Francisco, Cal. 


8 


6-30-00 Navy yards and stations, coaling plants, magazines, 

INSPECTION DISTRICTS, PURCHASING PAY AND DISBURSING 
OFFICES, WIRELESS-TELEGRAPH STATIONS, AND BRANCH 
HYDROGRAPHIC OFFICES. 

6-31-00 Navy Yards and Stations. 

6-31-01 Boston (Mass.) Navy Yard. 

6-31-02 Cavite (P. I.) Naval Station. 

6-31-03 Cebu (P. I.) Naval Station. 

6-31-04 Charleston (S. C.) Navy Yard. 

6-31-05 Culebra (P. It.) Naval Station. 

6-31-06 Guam (M. I.) Naval Station. 

6-31-07 Guantanamo (Cuba) Naval Station. 

6-31-08 Plonolulu (T. H.) Naval Station. 

6-31-09 Indian Head (Md.) Naval Proving Ground. 

6-31-10 Indian Head (Md.) Naval Powder Factory. 

6-31-11 Key West (Fla.) Naval Station. 

6-31-12 Mare Island (Cal.) Navy Yard. 

6-31-13 Narragansett Bay (R. I.) Naval Station. 

6-31-14 New London (Conn.) Naval Station. 

6-31-15 New Orleans (La.) Naval Station. 

6-31-16 Newport (R. I.) Torpedo Station. 

6-31-17 New York (N. Y.) Navy Yard. 

6-31-18 Norfolk (Ya.) Navy Yard. 

6-31-19 Olongapo (P. I.) Naval Station. 

6-31-20 Panama (C. Z.) Naval Station. 

6-31-21 Pearl Harbor (T. H.) Naval Station. 

6-31-22 Pensacola (Fla.) Navy Yard. 

6-31-23 Philadelphia (Pa.) Navy Yard. 

6-31-24 Polloc (P. I.) Naval Station. 

6-31-25 Port Royal (S. C.) Naval Station. 

6-31-26 Portsmouth (N. H.) Navy Yard. 

6-31-27 Puget Sound (Wash.) Navy Yard. 

6-31-28 Sacketts Harbor (N. Y.) Naval Station. 

6-31-29 San Juan (P. R.) Naval Station. 

6-31-30 Sitka (Alaska) Naval Station. 

6-31-31 Tutuila (Samoa) Naval Station. 

6-31-32 Washington (D. C.) Navy Yard. 

6-31-33 Torpedo Station, Pacific coast. 

6-31-90 Naval Home, Philadelphia. 

6-32-00 Naval Training Stations 
6-32-01 Newport, R. I. 

6-32-02 North Chicago, Ill. 

6-32-03 Norfolk, Ya. 

6-32-04 San Francisco, Cal. 

6-33-00 Naval Coaling Plants. 

6-33-01 Bradford, R. I. 

6-33-02 Frenchmans Bay. 

6-33-03 Pichilinque, Mexico. 

6-33-04 San Diego, Cal. 

6-33-05 Sitka, Alaska. 

6-33-06 Tiburon, Cal. 


9 


Naval Coaling Plants —Continued. 
6-33-07 Yokohama, Japan. 

6-33-08 Midway Islands. 

6-33-51 Annapolis, Md. 

6-33-52 Boston, Mass. 

6-33-53 Culebra, P. R. 

6-33-54 Dry Tortugas, Fla. 

6-33-55 Guam, L. I. 

6-33-56 Guantanamo, Cuba. 

6-33-57 Honolulu, Hawaii. 

6-33-58 Key West, Fla. 

6-33-59 Mare Island, Cal. 

6-33-60 New London, Conn. 

6-33-61 New Orleans, La. 

6-33-62 New York, N. Y. 

6-33-63 Norfolk, Va. 

6-33-64 Olongapo, P. I. 

6-33-65 

6-33-66 

6-33-67 Pago Pago. 

6-33-68 Pensacola, Fla. 

6-33-69 Philadelphia, Pa. 

6-33-70 Port Royal, S. C. 

6-33-71 Portsmouth, N. H. 

6-33-72 Puget Sound, Wash. 

6-33-73 Sangley Point, P. I. 

6-33-74 San Juan, P. R. 

6-33-75 Washington, D. C. 


6-34-00 

6-34-01 

6-34-02 

6-34-03 

6-34-04 

6-34-05 

6-34-06 

6-34-07 

6-34-08 

6-34-09 

6-34-10 

6-34-11 

6-34-12 

6-34-13 

6-34-14 

6-34-15 

6-34-16 

6-34-17 

6-34-18 

6-34-19 

6-34-20 

6-34-21 

6-34-22 

6-34-23 

6-34-24 


Naval wireless-telegraph stations. 
Annapolis, Md. 

Boston, Mass, (navy yard). 

Brooklyn, N. Y. (navy yard). 

Cape Blanco, Denmark, Oreg. 

Cape Cod, North Truro, Mass. 

Cape Elizabeth, Me. 

Cape Henlopen, Lewes, Del. 

Cavite, P. I. (naval station). 
Charleston, S. C. (navy yard). 

Colon, Isthmian Canal Zone. 
Cordova, Alaska. 

Culebra, West Indies (naval station). 
Diamond Shoals lightship. 

Farallon Island, Cal. 

Fire Island, N. Y. 

Frying Pan Shoals lightship. 
Guantanamo, Cuba (naval station). 
Honolulu, Hawaii (naval station). 
Island of Guam (naval station). 
Jupiter Inlet, Neptune, Fla. 

Key West, Fla. (naval station). 

Mare Island, Cal. (navy yard). 
Nantucket Shoals lightship. 

New Orleans, La. (naval station). 


10 


Naval wireless-telegraph stations —Continued, 
6-34-25 Newport, R. I. (torpedo station). 

6-34-26 Norfolk, Va. (navy yard). 

6-34-27 North Head, Ilwaco, Wash. 

6-34-28 Pensacola, Fla. (navy yard). 

6-34-29 Philadelphia, Pa. (navy yard). 

6-34-30 Pivers Island, Beaufort, N. C. 

6-34-31 Point Arguello, Surf, Cal. 

6-34-32 Point Loma, San Diego, Cal. 

6-34-33 Porto Bello, Isthmian Canal Zone. 

6-34-34 Portsmouth, N. H. (navy yard). 

6-34-35 Puget Sound, Wash, (navy yard). 

6-34-36 San Juan, P. R. (naval station). 

6-34-37 Sitka, Alaska. 

6-34-38 St. Augustine, Fla. 

6-34-39 Table Bluff, Loleta, Cal. 

6-34-40 Tatoosh Island, Wash. 

6-34-41 Unimak Pass, Alaska. 

6-34-42 Washington, D. C. (navy yard). 

6-34-43 Yarba Buena Island, Cal. 

6-35-00 Naval magazines. 

6-35-01 Dover, N. J. 

6-35-02 Fort Lafayette, N. Y. 

6-35-03 Fort Mifflin, Pa. 

6-35-04 Hingham, Mass. 

6-35-05 Iona Island, N. Y. 

6-35-06 Mare Island, Cal. 

6-35-07 Olangapo, P. I. 

6-35-08 Puget Sound, Wash. 

6-35-09 St. Julien’s Creek, Ya. 

6-35-10 Fort Norfolk, Ya. 

6-35-11 Bellevue, D. C. 

6-35-12 Nitre Depot, Malden, Mass. 

6-36-00 Purchasing pay and disbursing offices. 

6-36-01 Purchasing pay office, Baltimore, Md. 
6-36-02 Purchasing pay office, Boston, Mass. 
6-36-03 Purchasing pay office, Charleston, S. C. 
6-36-04 Purchasing pay office, Manila, P. I 
6-36-05 Purchasing pay office, Newport, R. I. 
6-36-06 Purchasing pay office, New York, N. Y. 
6-36-07 Purchasing pay office, Norfolk, Va. 

6-36-08 Purchasing pay office, Philadelphia, Pa. 
6-36-09 Purchasing pay office, Portsmouth, N. H. 
6-36-10 Purchasing pay office, San Francisco, Cal. 
6-36-11 Purchasing pay office, Seattle, Wash. 
6-36-12 Purchasing pay office, Washington, D. C. 
6-36-13 Disbursing office, Washington, D. C. 
6-36-14 Allotment office, Washington, D. C. 


11 


6-37-00 Inspection districts, including private plants where inspection 
services are required. 

6-37-10 Inspection worTc at private shipbuilding plants. 

6-37-11 Bath Iron Works, Bath, Me. 

6-37-12 Fore River Shipbuilding Co., Quincy, Mass. 

6-37-13 New York Shipbuilding Co., Camden, N. J. 

6-37-14 Wm. Cramp & Sons, Philadelphia, Pa. 

6-37-15 Newport News Shipbuilding and Dry Dock Co., New¬ 
port News, Ya. 

6-37-16 Maryland Steel Co., Sparrows Point, Md. 

6-37-17 Union Iron Works, San Francisco, Cal. 

6-37-18 The Moran Co., Seattle, Wash. 

6-37-19 The Lake Torpedo Boat Co., Bridgeport, Conn. 


6-37-30 Miscellaneous inspections , consisting of steel, iron, copper, 
bronze, brass, pipes and pipe fittings, boilers, engines, 
armor plates, gun-carriage castings , powder, etc., electrical 
material of all hinds, etc. 

6-37-31 Philadelphia, Pa. 

6-37-32 Munhall, Pa. (including Pittsburg). 

6-37-33 Bethlehem, Pa. 

6-37-34 Harrisburg, Pa. 

6-37-35 Chester, Pa. 

6-37-36 Hartford, Conn. 

6-37-37 Bridgeport, Conn. 

6-37-38 Brooklyn, N. Y. 

6-37-39 Boston, Mass. 

6-37-40 Schenectady, N. Y. 

6-37-41 Jersey City, N. J. 

6-37-42 Washington, D. C. 

6-37-43 Bayonne, N. J. 

6-37-44 Ossining, N. Y. 

6-37-45 Annapolis, Md. (Engineering Experiment Station). 


6-38-00 Branch hydrographic ofices. 
6-38-01 Boston, Mass. 

6-38-02 Baltimore, Md. 

6-38-03 Buffalo, N. Y. 

,6-38-04 Chicago, Ill. 

6-38-05 Cleveland, Ohio. 

6-38-06 Duluth, Minn. 

6-38-07 Galveston, Tex. 

6-38-08 New York, N. Y. 

6-38-09 New Orleans, La. 

6-38-10 Norfolk, Ya. 

6-38-11 Philadelphia, Pa. 

6-38-12 Portland, Oreg. 

6-38-13 Port Townsend, Wash. 
6-38-14 Sault Ste. Marie, Mich. 
6-38-15 San Francisco, Cal. 

6-38-16 vSavannah, Ga. 


12 


6-40-00 Hospitals, schools, target ranges, and 

INSTRUCTION, RECRUITING STATIONS. 

6-41-00 Hospitals. 

6-41-01 Portsmouth, N. H. 

6-41-02 Chelsea, Mass. 

6-41-03 Narragansett Bay, R. I. 

6-41-04 New York, N. Y. 

6-41-05 Philadelphia. Pa. 

6-41-06 Annapolis, Md. 

6-41-07 Washington, D. C. 

6-41-08 Norfolk, Va. 

6-41-09 Port Royal, S. C. 

6-41-10 Pensacola, Fla. 

6-41-11 San Juan, P. R. 

6-41-12 Great Lakes, North Chicago, Ill. 

6 - 41-13 Las Animas, Colo. 

6-41-14 Mare Island, Cal. 

6-41-15 Puget Sound, Wash. 

6-41-16 Sitka, Alaska. 

6-41-17 Yokohama, Japan. 

6-41-18 Canacao, P. I. 

6-41-19 Olongapo, P. I. 

6-41-20 Guam, Marianas. 


CA M PS FOR 


6-41-50 Dispensaries. 

6-41-51 Portsmouth (yard). 

6-41-52 Boston (yard). 

6-41-53 Newport (training station). 

6-41-54 Newport (torpedo station). 

6-41-55 New York (yard). 

6-41-56 Philadelphia (yard). 

6-41-57 Annapolis (Academy). 

6-41-58 Washington, D. C. (yard). 

6-41-59 Indian Head. 


6-41-60 

6-41-61 

6-41-62 

6-41-63 

6-41-64 

6-41-65 

6-41-66 

6-41-67 

6-41-68 

6-41-69 

6-41-70 

6-41-71 

6-41-72 

6-41-73 

6-41-74 

6-41-75 


Norfolk (yard). 

Charleston (yard). 

Pensacola (yard). 

Key West (station). 

San Juan (station). 

Culebra (station). 

Guantanamo (station). 

New Orleans (station). 

Mare Island (yard). 

San Francisco (station). 

Puget Sound (yard). 

Hawaii (station). 

Tutuila (station). 

Cavite (yard). 

Olongapo (station). 

Mills Building, Washington, D. C. 


13 


6-42-00 Schools, Navy. 

6-42-01 Naval Academy, Annapolis, Md. 

6-42-02 Artificer School, Norfolk, Va. 

6-42-03 Commissary School, Newport, R. I. 

6-42-04 Commissary School, San Francisco, Cal. 

6-42-05 Electrical School, New York, N. Y. 

6-42-06 Electrical School, Mare Island, Cal. 

6-42-07 Marine Engineering School, Annapolis, Md. 

6-42-08 Machinist School, Norfolk, Va. 

6-42-09 Machinist School, Charleston, S. C. 

6-42-10 Musician School, Newport, R. I. 

6-42-11 Seaman Gunners’ School, Newport, R. I. 

6-42-12 Seaman Gunners’ School, Washington, D. C. 
6-42-13 Yeoman School, Newport, R. I. 

6-42-14 Yeoman School, San Francisco, Cal. 

6-42-15 Miscellaneous instruction. 

6-43-00 Naval medical schools. 

6-43-01 Naval Medical School, Washington. 

6-43-05 Hospital Corps School, New York. 

6-43-06 Hospital Corps School, Washington. 

6-43-07 Hospital Corps School, Norfolk. 

6-43-08 Hospital Corps School, Mare Island. 

6-43-09 Hospital Corps School, Canacao. 

6-43-10 Nurse Corps School, Washington. 

6-43-20 Naval medical supply depots. 

6-43-21 Brooklyn. 

6-43-22 Mare Island. 

6-43-23 Canacao. 

6-44-00 Schools, Marine Corps. 

6-44-01 Advanced Base School, New London, Conn. 
6 -44-02 Marine Officers’ School, Port Royal, S. C. 

6-44-03 Miscellaneous instruction. 

6-45-00 Target ranges (Navy). 

6-45-01 Annapolis, Md. 

6-45-02 Cavite, P. I. 

6-45-03 Guantanamo. 

6-45-04 Key West, Fla. 

6-45-05 Mare Island, Cal. 

6-45-06 Newport, R. I. 

6-45-07 New York, N. Y. 

6-45-08 Norfolk, Va. 

6-45-09 Olongapo, P. I. 

6-45-10 Pensacola, Fla 

6-45-11 Philadelphia, Pa. 

6 -45-12 Pearl Harbor, Hawaii. 

6-45-13 West Coast Range. 

6-46-00 Target ranges and camps of instruction, Marine Corps r 
6-46-01 Marine Corps rifle range, Winthrop, Md. 


14 


6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-47- 

6-48- 

6-48- 

6-48 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 

6-48- 


00 Recruiting stations (Navy). 

01 Boston, Mass. 

-02 Baltimore, Md. 

-03 Buffalo, N. Y. 

-04 Cincinnati, Ohio. 

-05 Cleveland, Ohio. 

06 Chicago, Ill. 

-07 Cedar Hapids, Iowa. 

-08 Chattanooga, Tenn. 

09 Detroit, Mich. 

-10 Dallas, Tex. 

-11 Indianapolis, Ind. 

-12 Kansas City, Mo. 

-13 Los Angeles, Cal. 

-14 Minneapolis, Minn. 

-15 New York, N. Y. 

-16 New York, N. Y. (publicity office). 

-17 New Orleans, La. 

-18 Omaha, Nebr. 

-19 Philadelphia, Pa. 

-20 St. Louis, Mo. 


00 Recruiting districts (Marine Corps). 

01 Recruiting district of Buffalo, headquarters, Buffalo, N. Y. 

-02 Recruiting district of Cincinnati, headquarters, Cincin¬ 
nati, Ohio. 

-03 Recruiting district of Illinois, headquarters, Chicago, Ill. 

-04 Recruiting district of Kansas City, headquarters, Kansas 
City, Mo. 

05 Recruiting district of Massachusetts, headquarters, Bos¬ 
ton, Mass. 

-06 Recruiting district of Michigan, headquarters, Detroit, 
Mich. 

-07 Recruiting district of Minnesota, headquarters, St. Paul, 
Minn. 

-08 Recruiting district of New York, headquarters, New York, 
N.Y. 

-09 Recruiting district of Pennsylvania, headquarters, Phila¬ 
delphia, Pa. 

-10 Recruiting district of the Pacific coast, headquarters, San 
Francisco, Cal. 

-11 Recruiting district of Pittsburg, headquarters, Pittsburg, 
Pa. 

-12 Recruiting district of Texas, headquarters, Dallas, Tex. 

-13 Recruiting district of Utah, headquarters, Salt Lake City, 
Utah. 






i i 





15 


0 50 00 The Fleet. (Includes all vessels borne on Navy Register.) 


6-60-00 Marine Corps. 


6-61-00 Marines with the Fleet. 


6 -66-00 Marine posts and stations (including all shore stations other 
than those enumerated elsewhere): 

6 -66-01 Annapolis (Md.), Naval Academy. 

6 -66-02 Boston, Mass.— 

6-66-03 Marine barracks, navy yard. 

6-66-04 Naval prison, navy yard. 

6-66-05 Charleston (S. C.), navy yard. 

6-66-06 Culebra (P. R.), naval station. 

6-66-07 Dover (N. J.), naval powder depot. 

6-66-08 Guam (M. I.), naval station. 

6-66-09 Guantanamo (Cuba), naval station. 

6 -66-10 Hingham (Mass.), naval magazine. 

6 -66-11 Honolulu (Hawaii), naval station. 

6 -66-12 Iona Island (N. Y.), naval powder depot. 

6-66-13 Isthmian Canal Zone (Panama), Camp Elliott. 

6-66-14 Key West (Fla.), naval station. 

6-66-15 Las Animas (Colo.), naval hospital. 

6-66-16 Mare Island (Cal.), navy yard. 

6-66-17 New Orleans (La.), naval station. 

6-66-18 Newport (R. I.), naval training station. 


16 


6-66-19 

6 - 66-20 

6 - 66-21 

6 - 66-22 

6-66-23 

6-66-24 

6-66-25 

6-66-26 

6-66-27 

6-66-28 

6-66-29 

6-66-30 

6-66-31 

6-66-32 

6-66-33 

6-66-34 

6-66-35 

6-66-36 

6-66-37 

6-66-38 

6-66-39 

6-66-40 

6-66-41 

6-66-42 

6-66-43 

6—66—44 

6-66-45 

6-66-46 

6-66-47 

6-66-48 

6-70-00 

6-90-00 


Marine posts and stations (including all shore stations other 
than those enumerated elsewhere) — Continued. 

New York, N. Y.— 

Marine barrack's, navy yard. 

Naval hospital. 

Norfolk, Ya. — 

St. Julien’s Creek (Ya.), naval magazine. 

Marine barracks, navy yard. 

Naval hospital. 

Peking (China), United States legation. » 

Pensacola (Fla,), naval station. 

Philadelphia, Pa.— 

Fort Mifflin, naval magazine. 

Marine barracks, navy yard. 

Naval home. — 

Philippine Islands-— 

Cavite, navy } T ard. 

Manila, brigade headquarters. 

Olongapo, naval station. 

Portsmouth, N. H.— 

Marine barracks, navy yard. 

Naval prison. 

Puget Sound (Wash.), navy yard. 

San Francisco (Cal.), naval training station. 

San Juan (P. R.), naval station. 

Sitka (Alaska), marine barracks. 

Washington, D. C.— 

Marine barracks. 

Band, United States Marine Corps. 

Marine barracks, navy yard. 

Naval Medical School Hospital. 

Yokohama (Japan), naval hospital. 

The Naval Militia. 

Miscellaneous. —Special and other temporary and unat¬ 
tached committees, commissions and boards, and officers 
detailed to special service, reporting directly to the Secre- 
rary, not a part of a regularly established organization, 
and officers and men changing station or leaving the 
service. 


L 


O 


THE PRESIDENT’S COMMISSION ON ECONOMY AND EFFICIENCY 


INTERIM REPORT 

ON 

PLAN OF INQUIRY AND 
PROGRESS OF WORK 

FROM SEPTEMBER 27 TO 
DECEMBER 31, 1910 


CIRCULAR NO. 4 




WASHINGTON 

1911 






♦ 





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INTRODUCTORY NOTE. 


This report was submitted to Secretary Charles D. Norton, at his 
request, January 9, 1911, the period covered being from September 
27, the date that the inquiry began, to December 31, 1910. On Jan¬ 
uary 10 it was transmitted to the President. At the time of its 
preparation it was not intended for publication, but as a confidential 
statement submitted for the information of the President, members 
of the Cabinet, and departmental committees. Having served this 
purpose the many requests for a statement of the general plan of the 
inquiry, as well as of the progress of the work, has suggested the 
desirability of making the interim report as submitted, with slight 
modifications and references to subsequent circulars, one of the 
publications of this commission. Further report will be made to the 
President, and as required by the last appropriation act a report 
will be submitted by the President to Congress in December, 1911. 

In March, 1911, the President decided to continue the inquiry 
through a Commission on Economy and Efficiency, and subsequently 
selected the five members and a secretary. The names of those 
selected, with the positions held by them at the time of appointment, 
are: 

Frederick A. Cleveland (in charge of the inquiry before the com¬ 
mission was organized) as chairman. 

William F. Willoughby, Assistant Director of the Census. 

Walter W. Warwick, Auditor of the Panama Canal and of the 
Government of the Canal Zone. 

Frank J. Goodnow, professor of administrative law at Columbia 
University. 

Harvey S. Chase, certified public accountant. 

Merritt O. Chance, Auditor for the Post Office Department, was 
appointed secretary. 

























: 

> 


















INTERIM REPORT ON PLAN OF INQUIRY AND PROGRESS 

MADE FROM SEPTEMBER 27 TO DECEMBER 31, 1910. 

Washington, D. C., January 9, 1911. 

Hon. Charles D. Norton, 

Secretary to the President. 

Sir: In accordance with your request for an interim report on the 
progress made in organizing and conducting the President’s inquiry 
into economy and efficiency, the following is submitted: 

Broad Considerations Governing the Inquiry. 

SCOPE AND PURPOSE AS STATED IN ACT OF APPROPRIATION. 

What has been considered as the most general instruction is the 
act of Congress appropriating the funds needed. At the behest of the 
President, a paragraph was embodied in the sundry civil appro¬ 
priation act of June 25, 1910, which, in so far as it defines the scope 
and purpose of the inquiry, is as follows: 

To enable the President, by the employment of accountants and 
experts from official and private life, to inquire more effectually into 
the methods of transacting the public business, of the Government 
in the several departments and other governmental establishments, 
with the view to inaugurating new or changing old methods of 
transacting such public business, so as to attain greater efficiency 
and economy therein, and to ascertain and recommend to Congress 
what changes in law may he necessary to carry into effect such 
results of his inquiry as can not be carried into effect by Executive 
action alone. 1 


COOPERATIVE POLICY ANNOUNCED BY THE PRESIDENT. 

At the first meeting of the Cabinet after the summer (Sept. 27), a 
policy was announced by the President, and, pursuant thereto, each 
head"of department was asked to appoint a committee of competent, 
experts, already engaged in the service of the Government, to collabo¬ 
rate with the White House staff, and through cooperation to provide 
both for joint consideration of common problems and for uniformity 
of departmental action upon subjects of Executive determination. 
The committees appointed were as follows: 

State Department. —Hon. Huntington Wilson, Assistant Secretary 
of State, chairman; Mr. Wilbur J. Carr, director of the Consular 
Service; Mr. William McNeir, chief clerk. 

Department of the Treasury. —Mr. James L. Wilmetli, chief clerk, 
chairman; Mr. M. O. Chance, Auditor for the Post Office Department; 2 
Mr. Lawrence O. Murray, Comptroller of the Currency. 


1 A similar appropriation for the fiscal year ending June 30,1912, was made in the sundry civil appropria¬ 
tion act of March 4,1911. .... ... m. 1 „ 

2 Mr. Chance having been appointed secretary of the commission, his successor as auditor, Mr. Charles 





6 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


Department of War. —Maj. Gen. F. C. Ainsworth, Adjutant General 
of the Army, president; Capt. Fred W. Sladen, recorder; Brig. Gen. 
W. W. Wotherspoon; Brig. Gen. E. A. Garlington; Assistant and 
Chief Clerk John C. Scofield. 

Department of Justice. —Mr. O. J. Field, chief clerk, chairman; Mr. 
S. W. Finch, Chief of the Bureau of Investigation; Mr. J. H. Mackey, 
disbursing clerk. 

Post Office Department. —Mr. Theodore L. Weed, chief clerk, chair¬ 
man; Mr. Robeit S. Sharp, chief post-office inspector; Mr. George 
G. Thomson, superintendent Division of Supplies. 

Department of the Navy. —Admiral Richard Wainwright, chairman; 
Capt. R. C. Smith; Pay Inspector G. W. Simpson; Commander 
Philip Andrews; Naval Constructor R. H. Robinson; Commander J. 
M. Poyer, recorder. 

Department of the Interior. —Mr. Oscar Lawler, Assistant Attorney 
General, chairman; 1 Mr. Don M. Carr, private secretary to the Secre¬ 
tary; Mr. Clement S. Lacker, chief clerk. 

Department of Agriculture. —Mr. George P. McCabe, solicitor, chair¬ 
man; Mr. Jasper Wilson, private secretary to the Secretary; Mr. A. 
Zappone, Chief of the Division of Accounts and Disbursements; Mr. 
James B. Adams, Assistant Forester; Mr. C. C. Carroll, chief clerk 
Bureau of Animal Industry. 

Department of Commerce and Labor. —Mr. Robert M. Pindell, jr., 
chief clerk, chairman; Mr. W. F. Willoughby, Assistant Director of 
the Census; 2 Mr. W. L. Soleau, disbursing clerk; 3 Mr. George C. 
Havenner, Chief of Division of Publications; Mr. Roger O’Donnell, 
special immigrant inspector, Bureau of Immigration and Naturali¬ 
zation. 

Smithsonian Institution. —Mr. W. de C. Ravenel, administrative 
assistant, National Museum; Mr. H. W. Dorsey, chief clerk; Mr. 
A. B. Baker, assistant superintendent, Zoological Garden. 

Interstate Commerce Commission. —Mr. H. S. Milstead, disburs¬ 
ing clerk. 

Commissioners of the District of Columbia. —Mr. Alonzo Tweedale, 
Auditor of District. 

Civil Service Commission. —Mr. G. R. Wales, chief examiner; 
Mr. J. T. Doyle, secretary. 

Government Printing Office. —Benjamin C. Vipond, James K. 
Wallace, and Seward T. Covert. 

Address of the President to Departmental Representatives. 

Addressing the representatives of the departmental committees 
appointed to cooperate in the inquiry, the President spoke as follows: 

Gentlemen: I have asked you to come into my office to-day 
because I want to make clear to you gentlemen who represent the 
various departments, as I have already done to your superior officers, 
the members of my Cabinet, my dee]) personal interest in this inquiry 
into economy and efficiency of the Government which I have inaugu¬ 
rated. On account of the pressure on my time I have necessarily 


1 Mr. Lawler and Mr. Carr having resigned, Mr. Charles W. Cobb and Mr. Irving Rittenhouse were 
appointed, and Mr. Edward B. Fox was added to the committee. 

2 Since Mar. 30 1911, Mr. Willoughby has been a member of the commission. 

2 Mr. Soleau having resigned from the service, Mr. George Johannes took his place. 



REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 7 

« 

turned over to Mr. Norton the details of organizing a staff of men 
competent to carry on the exceedingly difficult and interesting 
examination, but I want to express to you my deep personal interest 
in the work. I have kept in very close contact with it, and I intend 
to do so in the future. 

While I can not indorse all of the things that have been said as to 
the amount of money that can be saved yearly by a more economi¬ 
cal and efficient administration of the Government, I do thoroughly 
indorse the proposition that in Government business, as in every other 
business, a close and diligent scrutiny will lead to economies. 

At the very outset, before we can begin our work, we are con¬ 
fronted by the difficulties which arise out of the confused and archaic 
system of displaying our expenditures. I refer to our estimates. 
While the law requires that the estimates be submitted to Congress 
in the usual form this year, I am very desirous that point be given 
to the purpose of this inquiry by having the proposed expendi¬ 
tures reclassified and thus reduced to a scientific basis, so that 
there may be some common understanding as to what is meant when 
appropriations are asked for. At the present time Congress appro¬ 
priates large sums of money, leaving it to each administrative officer 
to make his own classification when he comes to expend that money. 
This practice makes intelligent judgment as to economy and effi¬ 
ciency impossible, and so before we get into th£ more interesting 
phase of this work we have to go right down deep and lay the founda¬ 
tion in the forms of the estimates and appropriations. This will lay 
a burden of extra work upon all of you, but I know how loyally you 
will respond to it. 

My long experience in the Government leads me to believe that 
while Government methods are much criticised, the bad results, if 
they are bad results, are not due to a lack of zeal or willingness on 
the part of the civil servants. On the contrary I believe that a fine 
spirit of willingness to work exists in the personnel, which, if prop¬ 
erly encouraged, will secure results equal to those secured by the 
best-managed private corporations. 

Now, we want economy and efficiency; we want savings, and 
savings for a purpose. We want to reduce the expenditures of the 
Government, and we want to save money to enable the Government 
to go into some of the beneficial projects which we are debarred 
from taking up now because we can not increase our expenditures. 

Projects affecting the public health, new public works, and other 
beneficial activities of Government can be furthered if we are able 
to get a dollar of value for every dollar of the Government’s money 
which we expend. 

One of the disappointing things about being President is that 
one comes in contact too little with the men down in the service 
upon whom we rely to do the day’s work. I wish I might meet 

them and encourage them more frequently than I do. I realize 

that while there are about 50 of you here, you are a very small 

group. To you and to all your associates in the departments, I 

wish to extend my thanks for the spirit of cooperation which you 
display, and with ^ you I look forward to an interesting experience 
as we inaugurate this new presidential inquiry into economy and 
efficiency. When we have completed the work, I ought to be able 


8 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

to receive daily, weekly, and monthly reports which will indicate 
clearly to me where the good administrators are, the men who 
ought to be encouraged, and where the wasteful and inefficient ones 
are, the men whose activities ought to be discouraged. 

There has been a good deal said in the newspapers about experts 
who have been engaged for the purpose of reducing expenses. We 
have advisers. We have men who suggest. But we haven’t any 
experts who are going to make these reductions but you! 

If the reductions are made, it is the men in the departments, the 
committees, who will be entitled to the credit, and all I am anxious 
to do is to have you know that it is upon you that we depend for 
this work, and that this work is not undertaken in any criticism of 
anybody in the departments; but that it is a suggestion to the depart¬ 
ments to do the work themselves and by their own investigation 
and their own energy and interest and effort, see if they can not 
reduce what it costs to run the Government. 

I do not think I can emphasize that point too much. It is natural 
if a man comes into your department and says, “Why, you are 
running this department too extravagantly; I am here to show you 
how to economize/’ for you to feel an intense antagonism to that 
man. What I want to impress upon you is that there is nobody 
investigating you, but that you are investigating yourselves; you are 
trying to determine what can be done to reduce expenditures and 
increase efficiency. I think you ought to embrace this work with 
earnestness and enthusiasm. The work of a Government clerk, of 
a division chief, of a bureau chief, may well fall into a dead routine 
where there is nothing to gain, nothing ahead but to keep up a tread¬ 
mill motion. That is what I wish to eliminate from your service 
if it is there. I want you to feel that there is something ahead that 
you can accomplish, and that when you have accomplished it you 
will get the credit for it. 

Plans for Developing and Utilizing the Cooperation of Those 
in Charge of the Details of Public Business. 

Proceeding from the foregoing official acts as premises, it has been 
assumed as a working principle that any constructive proposal or 
change of method to be recommended should be founded on full 
knowledge of the following subjects: 

I. The administrative problem before each departmental bureau 
or division head. 

II. The organization and equipment provided for dealing with the 
problem. 

III. The methods and procedure employed by those in charge of 
the work. 

IV. The results obtained. 

V. Expert opinion as to defects in the present organization, equip¬ 
ment, methods, and results. 

The first step taken in planning for cooperative work, therefore, 
had reference to these considerations, the information asked for being 
outlined in a memorandum submitted on October 1, as follows: 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 9 


Memorandum submitted outlining reports to be asked from departments. 

To the end that there may be the broadest cooperation in the 
work which has been undertaken by the President, that information 
may be available to all parties in interest as a basis for independent 
judgment pertaining to the organization and work of the several 
departments, and, at the same time, that there may be uniformity in 
the method of reporting by the several bureau and division heads 
and by the several committees of experts appointed in each depart¬ 
ment, the following suggestions as to method of beginning work 
are made: 

1. That the Attorney General be asked to have prepared a digest 
showing the powers, duties, and limitations of each officer. (A sim¬ 
ilar report to be requested from each department.) 

2 . That the head of each bureau or division of the service be 
asked by the Secretary of the department to which he belongs to 
report, on forms prepared for such purpose, a list of all records, 
documents, and files, by names and description of use. 1 

3. That the head of each bureau or division be asked by the Sec¬ 
retary of the department to which he belongs to report, on forms 
designed for such use, a description of the organization, together 
with a complete list of employees and the character of duties per¬ 
formed bv each. 

4. That each of the committees of experts appointed in depart¬ 
ments be asked to report, on forms prepared for such purpose, a full 
and detailed description of the methods and procedure at present 
employed in each department. 

5. That each bureau or division be asked to report on the amount 
of work performed by each employee, in such terms as will permit 
the same to be considered in relation to the work requirements of 
the bureau or division. 

6. That the head of each department report to the President, on 
forms prepared for this use, a full list of all persons who by reason 
of their age or disability are unable to render efficient service in the 
positions in which they are at present employed. 

7. That the several committees of experts appointed in each 
department be asked to render, on forms prepared for such use, a 
critical and constructive report, with recommendations pertaining to 
each bureau or division thereof. 

8 . That each employee of the Government be asked to report, for 
the consideration of the President, on a form prepared for such use, a 
description of his present work, together with any constructive sug¬ 
gestions or recommendations that he may desire to have considered. 

i Department committees on handling and filing of correspondence were subsequently appointed as 
follows: 

Department of State. —W. E. Buck. 

Department of the Treasury.—Lieut. L. P. Cutter, Russell Howard, A. A. Clemmons. 

Department of War— John C. Schofield, Maj. Gen. F. C. Ainsworth. 

Department of Justice.— O. J. Field (chairman), C. F. Mikkelson. 

Post Office Department.— Bayard Wyman (chairman), W. E. Block. 

Depart ment of the Navy.— W. M. Smith (chairman), R. H. Moses, D. A. Skinner. 

Department of the Interior— L. B. Stein (chairman), W. O. Deatrick, A. L. Meek. 

Department of Agriculture.— C. C. Carroll (chairman), C. G. Anderson, H. L. Kays. 

Department of Commerce and Labor.— F. H. Bowen (chairman), William B. Chilton. 


4673—11-2 





10 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


TIIE WHITE HOUSE CONFERENCES. 

This memorandum was carefully considered, and on the same day 
was approved. Thereupon an informal conference of the several 
committees of departmental experts was called for October 7 to take 
up the methods of cooperation between the White House and the 
committees, as well as to discuss methods of coordination of effort. 
At tliis meeting mimeograph copies of suggested blank forms for 
reporting on subjects above outlined were distributed and discussed. 
The proposed instructions to be attached to each were also made the 
subject of detailed criticism and suggestion. These forms and instruc¬ 
tions as modified to accord with the suggestions of department 
representatives were sent to Beverly for approval, and Forms 1 to 4 
were approved for immediate use. These were in the order above 
set forth, with the exception that a report on prior investigations 
made, on subjects of business and administration, was substituted as 
Report No. 1, no regular forms being provided for the digest to be 
prepared by the Attorney General. 

BREADTH OF COOPERATION DEVELOPED. 

The requests for reports, together with the instructions for use of 
the several forms, were signed by the Secretary to the President, “By 
order of the President.” These instructions were printed on the backs 
of each form as issued. To the end that the organization for coopera¬ 
tion which had been provided by heads of departments might be util¬ 
ized, each chief of each bureau and division was asked to report on 
the organization or work for which he was immediately responsible; 
each report was to be signed by the person preparing the same; 
instruction was also given that each report was to be approved by the 
immediate superior of the person preparing the same, one copy was 
to be retained in the bureau or division reporting; one copy was 
to be collated for the department and retained by the committee of 
departmental experts under whose supervision the work was to be 
done; the original report, as collated for the entire department by 
each committee was requested for the White House. By tliis method 
not only were the departmental committees utilized in advisory and 
supervisory capacity, but literally thousands of other persons in the 
service have been brought to think along common lines about the 
administrative and business problems which were made the subject 
of inquiry. 

GENUINENESS OF INTEREST OF THOSE IN THE SERVICE. 

What may be stated as the first result of the President’s inquiry 
has been to bring into the foreground a splendid spirit of cooperation 
among Government employees. The first four reports requested are 
nearly all in. As each department has completed its returns on these, 
further forms calling for reports on other subjects have been issued. 
The Department of Justice has completed its report on the powers, 
duties, and limitations of each department and office. A similar 
report from each department on the same subject, to include a digest 
and specific references to departmental orders, is in progress. Having 


REPORT ON PLAN OP INQUIRY AND PROGRESS OF WORK. 11 


had attention directed to the same problem descriptively, each person 
so engaged has been asked to state what, in his opinion, are the defects 
in the present organization, administrative methods and results, and 
to submit constructive suggestions. 


INFORMATION OBTAINED MADE THE BASIS FOR CONSTRUCTIVE WORK. 

Report No. 6, as above described in the outline submitted, has been 
deferred, owing to the fact that Congress has a committee at work on 
the subject. As fast as information has been obtained through re¬ 
ports received at this office it has been indexed and digested, in order 
that it may he available for use either by the White House staff or 
the committee appointed by heads of departments to cooperate in 
making the inquiry and in formulating constructive proposals for the 
consideration of the President and his advisers. 

The Foundation Laid for Constructive Work Pertaining to 

Accounting and Reporting. 

JOINT COMMITTEE ON ACCOUNTING AND REPORTING. 

After receiving from departments a full list of all records kept and 
a description of organization methods and procedure, the several 
committees of departmental experts in conference of representatives 
at the White House appointed joint committees on different aspects 
of constructive work. The joint committee chosen to consider and 
formulate a plan for uniform expenditure accounting and reporting is 
made up as follows: 

Mr. A. Zappone, Chief of the Division of Accounts and Disburse¬ 
ments, Department of Agriculture. 

Mr. James L. Wilmeth, chief clerk, Department of the Treasury. 

Mr. W. A. Fitzsimmons, Assistant Chief Bureau of Accounts, 
Department of State. 

Mr. D. C. Crowell, paymaster, Department of the Navy. 

Mr. M. O. Chance, Auditor for the Post Office Department. 

Mr. F. A. Cleveland. 1 

WORK PROGRAM OF COMMITTEE. 

At the first meeting held by the joint committee on accounting 
and reporting it was decided that in approaching the problem assigned, 
the committee would adopt for its own guidance the following 
procedure: 

First. Take under consideration and reach a tentative conclusion 
as to what facts or classes of facts an administrator should have 
before him in order that he might think intelligently about the 
business of the Government; 

i After the commission was organized this committee was consolidated with the joint committee on 
expenditure documents. Mr. Crowell going to sea, Mr. Robnett took his place. Other members were 
added to complete the representatives of departments as follows: Mr. W. L. Soleau, and later Mr. George 
Johannes, Department of Commerce and Labor; Mr. E. M. Kennard, Department of Justice; Mr. C. II. 
Fulloway, Post Office Department; Lieut. Col. W. S. Pierce, Department of War; and Mr. Edward B. 
Fox, Department of the Interior. 



12 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

Second. To take under consideration and reach a tentative 
conclusion as to the form or forms on which these facts or classes of 
facts should be reported; 

Third. From these conclusions tentatively reached to consider 
what accounts or other records should be kept; and 

Fourth. What mechanical or other means should be provided in 
order to obtain the information which is currently or periodically 
needed. 

FIRST CONCLUSION REACHED. 

The first conclusion reached by the joint committee on accounting 
and reporting was this: That any person charged with responsibility 
for judgment about the economy of governmental expenditures, or 
the efficiency of the organization provided for carrying on govern¬ 
mental functions, should have before him all of the expenditure data 
related to these subjects; further that these data should be so 
classified that the officer in charge may have placed before him 
currently and accurately the facts about— 

1 . The cost of each organization unit. 

2 . The cost of each general function or general group of activities 
undertaken and performed by each organization unit. 

3. The cost of each project, unit of result, or job, whether under¬ 
taken and completed by a single unit of organization or the joint 
result of processes carried on within a number of organization units. 

4. The cost of each process entering into each project, result, or job. 

5. The amount of incumbrances on, as well as the expenditures 
from, each appropriation or other fund authorization. 

6 . The status of each claimant’s contract and of each claimant’s 
account. 

7. The classes or kinds of services or things represented by each 
class of expenditures above enumerated—that is, the objects of 
expenditure so analyzed and stated as to lay the foundation for 
judgment in terms of units of price. 

SECOND CONCLUSION. 

This first conclusion as to general requirements having been 
reached by the joint committee on accounting and reporting, the 
second step in the procedure adopted for their own guidance was 
taken, viz, the determination as to content of reports and the forms 
in which these reports should be rendered. The questions raised 
with respect to the reporting problem were: 

1 . What information should come currently to the President and 
his advisers about the Government as a whole. 

2 . What information should come currently to the President and 
to each head of a department about the business of each department. 

3. What of this supporting data should be currently reported to 
heads of bureaus, divisions, independent institutions, or to the chiefs 
of sections or subdivisions of work. 

4. What supporting data should be available when called for either 
by the President, by the head of a department, by Congress, or by 
the courts in passing judicially on questions before them pertaining 
to subjects of Government business. 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 13 


Outline of Classes of Subjects Concerning Which Informa¬ 
tion is Needed. 

- - — 

Since the subjects and the contents of reports needed were made 
the primary consideration in determining the classification of ac¬ 
counts, the second step in the procedure adopted by the joint com¬ 
mittee resulted in the preparation of the following draft or outline 
of the classes of subjects concerning which it was thought informa¬ 
tion would be needed by anyone interested in the problem of the 
Government as a whole: 

I. Pertaining to current Government funding. 

1. Estimated revenue which will be available for fiscal year. 

(a) Original estimates. 

(b) Pro rata of estimates for periods reported. 

(c) Amounts realized during period reported. 

(d) Amount of original estimates not realized. 

(e) Comparative data, prior year. 

2. Appropriations. 

(a) Available balance, prior years. 

(1) Continuous. 

(2) Annual. 

(3) Definite permanent annual. 

(b) Amount appropriated, current year. 

(1) Continuous. 

(2) Annual. 

(3) Definite permanent annual. 

(4) Indefinite permanent annual. 

(c) Amount expended. 

(1) Unexpended balance. 

(d) Amount of encumbrances. 

(1) Unencumbered balance. 

(e) Authorizations and reserves for continuous appro¬ 

priations, subsequent years. 

3. Bond authorizations (long term and short term). 

(a) Amount authorized. 

(1) Amount issued. 

(2) Unissued balance. 

(b) Amount appropriated. 

(1) Unappropriated balance. 

4. Trust funds. 

(a) Total amount of fund to be accounted for. 

(1) Amount expended. 

(b) Unexpended balance. 

(1) Amount of encumbrances. 

( c ) Unencumbered balance. 

5. Special funds. 

(a) Original amount to be accounted for. 

(1) Amount expended. 

( b ) Unexpended balance. 

(1) Amount of encumbrance. 

(c) Unencumbered balance. 


14 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


II. Pertaining to current Government assets (other than sinking funds, 

special and trust funds available for the payment of current 
liabilities ). 

1. Cash. 

(a) In Treasury. 

(b) In sub treasuries. 

(c) In bank depositaries. 

(d) In hands of disbursing oflicers and fiscal agents. 

(e) Other. 

2. Amounts due the Government. 

(a) Revenues receivable. 

(b) Other accounts receivable. 

3. Current deficit. 

(a) Excess of amounts due from the Government over 

cash. 

(b) Excess of other liabilities over liabilities. 

III. Pertaining to current Government liabilities (other than sinking 

funds , special and trust funds ). 

1. Amounts due from the Government. 

(a) Invoices and other unvouchered accounts payable. 

(b) Unaudited vouchers payable. 

(c) Unaudited pay rolls payable. 

(d) Warrants payable. 

(e) Other amounts due from the Government. 

2. Short-term loans. 

(a) Certificates of indebtedness. 

3. Excess of assets available for meeting liabilities (other 

than sinking funds, special and trust) over liabilities to 
be met. 

(a) Excess of cash over amounts due from the Gov¬ 

ernment. 

( b) Excess of amounts due the Government over other 

liabilities. 

IV. Pertaining to current revenues accrued during period from - 

to -. 

1. General Government. 

(a) Internal revenue. 

( b) Customs revenue. 

(c) Sales of public lands. 

{d) Miscellaneous revenue. 

2 . Postal service. 

3. Other revenues. 

4. Excess of expenses over revenues. 

V. Pertaining to current expenses incurred during period from - 

to -. 

1. General Government. 

(a) The Executive (proper). 

C b ) Military operations. 

(1) The Army. 

(2) The Navy. 






REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 15 


^ . Pertaining to current expenses incurred during period from - 

to -.—Continued. 

1. General Government—Continued. 

(c) Civil establishment. 

(1) The legislative. 

(2) The courts. 

(3) Administrative departments. 

(d) Miscellaneous. 

2. Postal service. 

3. Other expenses. 

4. Excess of revenues over expenses. 

VI. Pertaining to current surplus (or deficiency). 

1. Excess of assets (or deficit) at the beginning of the period 

from-to-. 

2. Net revenues (or expense) during period. 

3. Losses during period (or net accruals other than revenue). 

4. Excess of assets (or deficit) at end of period. 

VH* Pertaining to cost of properties, equipment, etc., or continuous use. 

1. Land and interests in land. 

2. Structures. 

3. Equipment. 

4. Live stock. 

5. Rights purchased and other purchase price outlays for 

properties for continuous use. 

6. Excess of bonded debt over property owned. 

VIII. Pertaining to bonded debt. 

1. Total amount outstanding. (Less sinking-fund assets.) 

2. Excess of properties over bonded debt. 

IX. Pertaining to special accounts. 

1. Assets. 

2. Liabilities. 

X. Pertaining to trust accounts. 

1. Trust assets. 

2 . Trust liabilities. 

XI. Pertaining to sinking funds. 

(a) Amount of reserve required to meet provisions of law or 

contract obligations to. bondholders. 

(b) Amount of sinking-fund assets. 

(1) Cash. 

(2) Investments. 

(3) Installments receivable. 

(4) Other. 

(c) Surplus or deficiency. 

• . * 

Suggested Form of Report. 

Proceeding from the general list or outline of subjects concerning 
which it was thought that information should be made currently 
available, the joint committee on “accounting and reporting” then 
formulated a tentative or suggested form in which the information 
could best be stated or reported, in order to get the information 
before an officer charged with administrative responsibility. 






16 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


Suggested Form of Report Showing Funding Provisions to Meet the 
Expenditures and to Protect the Liabilities of the Government of 
the United States. 1 

GENERAL FUND. 


Resources and requirements. 

Authorizations and balances. 

1. Unrealized balance of general fund re¬ 

ceipts, estimated for current year... 

2. Net cash balance. 

3. Amount due from bond funds. 

4. Resources required to meet contract 

authorizations to be subsequently 
appropriated for (see contra). 

1. Appropriable balance of estimated rev¬ 

enues. 

2. Unencumbered balance of appropria¬ 

tions. 

(а) Reserve for contract encum¬ 

brances. 

(б) Reserve for order encum¬ 

brances. 

3. Unexpended balance. 

4. Reserve for appropriations subsequent 

years (see contra). 

BOND FUNDS. 

Resources. 

Reserves and balance. 

Amount of bonds authorized and un¬ 
issued. 

Unapplied (net cash) balance. 

Reserve for amount due to the general 

fund. 

Unappropriated and encumbered bal¬ 
ance . 

1 See report form No. 1-b, Circular No. 20, p. 6, for the form of statement finally submitted. 

Suggested Form of Financial Statement Showing the Current Assets, Lia¬ 
bilities, and Operations of the Government of the United States. 1 

Assets available for the payment of 
current liabilities and reserves. 

Liabilities incurred and reserves 
against cash. 

I. Cash. 

1. In the Treasury. 

2. In subtreasuries. 

3. In bank depositories. 

4. In hands of disbursing officers 

and fiscal agent. 

5. Other. 

II. Amounts due to the Government_ 

1. Revenues receivable. 

2. Other accounts receivable. 

Total available assets. 

I. Amounts payable by the Government. 

1. Invoices not vouchered. 

2. Vouchers payable. 

3. Pay rolls payable. 

4. Warrants payable. 

5. Short-term loans and matured 

debt. 

6. Other accounts payable by the 

Government. 

Total current liabilities... 

II. Reserves against cash. 


III. Current deficit. Excess of current 
liabilities over assets available 
to meet them. 

1. Excess of amounts due from the 

Government over cash. 

2. Excess of other liabilities over 

amounts due to the Govern¬ 
ment. 


III. Current surplus. Excess current 
assets over current liabilities, 
and reserves. 

1. Excess of cash over amounts pay¬ 

able by the Government. 

2. Excess of amounts due to the 

Government... 


1 See report form No. 1-a, Circular No. 20, p. 5, for form of statement finally submitted. 


























































REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 17 


Suggested Form of Financial Statement Showing the Current Assets, Lia¬ 
bilities, and Operations of the Government of the United States —Contd. 

OPERATION ACCOUNT . * 1 2 3 4 1 


Assets available for the payment of 
current liabilities and reserves. 


Total expenses incurred. 

1. General Government. 

(а) The Executive. 

(б) Military operation. 

1. The Army. 

2. The Navy. 

(c) Civil establishment. 

1. Legislative. 

2. Courts. 

3. Administrative depart¬ 

ments and establish¬ 
ments. 

2. Postal service. 

3. Other. 

4. Excess of revenues over expenses. 


Liabilities incurred and reserves 
against cash. 


Total revenues accrued. 

1. General Government. 

(а) From internal revenue. 

(б) From customs revenue. 

(c) From public lands. 

( d ) Miscellaneous revenues 


2. Postal service. 

3. Other. 

4. Excess of expenses over revenues. 


CURRENT SURPLUS ACCOUNT. 


Assets available for future expenses only. 

1. Stores. 

2. Other advances.. 

Excess of assets available for payment of 
current liabilities at the beginning of 

period. 

Losses during the period. 

Excess of assets available for payment of 
current liabilities at the end of the 
period. 


Deduction from current surplus for stores 
and advances to make the account 
show excess of available assets over 

liabilities. 

Excess of current liabilities over assets 
available to meet them at the begin¬ 
ning of period from.to. 

Accruals other than revenues. 

Excess of current liabilities over assets 
available to meet them at the end of 
the period. 


1 See report form No. 1-c, Circular No. 20, p. 7. 


Suggested Summary Financial Statement Showing Cost of Properties 
Acquired for Continuing Use and Bonded Debt, Sinking Fund, and Special 
and Trust Funds. 


cost of property and ponded debt.'- 


Cost of properties. 

Land and interests in land 

Structures. 

Equipment. 


Excess of bonded debt over cost of 
• property acquired. 


Bonded debt total. 

(Less sinking fund assets.) 

Net bonded debt. 

Excess cost of property acquired 
over bonded debt, provided for ap¬ 
propriation from current revenue 
surplus. 


i See report form No. 1-d, Circular No. 20, p. 8, for form of statement finally submitted. 
4673—11-3 







































































18 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


Suggested Summary Financial Statement Showing Cost of Properties 
Acquired for Continuing Use and Bonded Debt, Sinking Fund, and Special 
and Trust Funds— Continued. 


SINKING FUND. 


Sinking fund assets. 

1. Cash. 

2. Investments 


Sinking fund deficiency 


Sinking fund reserves and liabilities- 

1. Reserves necessary to meet legal 

requirements. 

2. Liabilities. 

Vouchers payable. 

Warrants payable. 

Sinking fund surplus.. 


trust funds. 


Trust assets. 

Pledged to secure. 

Notes and certificates 

Gold coin. 

Silver dollars (1890).. 
Other silver dollars... 

Security deposits. 

Cash certified checks. 
Other trust assets. 


Trust liabilities and reserves. 

Notes and certificates outstanding... 

Gold certificates. 

Silver certificates. 

Treasury notes. 

Reserve for security deposits. 

Reserve for other trust assets. 


special funds. 


Special fund assets. 

Reserve fund. 

Gold coin. 

Bullion. 

Other special trust assets 


Special fund liabilities and reserves 

Reserve for redemption of. 

United States notes. 

And Treasury notes. 

Reserve for other special funds. 


Plan for Developing Uniform Accounting Forms and 

Procedure. 

The foregoing general conclusions having been reached by the 
joint committee on accounting and reporting, Messrs. Wilmeth, Zap- 
pone, Chance, and Cleveland, were asked to consider the question of 
supporting details and adjustments or modifications to be made in 
order to adapt the several classes of reports to their highest admin¬ 
istrative purpose, viz, to represent accurately the facts pertaining to 
the transactions of Government and to represent these in a manner 
which would enable the administrator to grasp them with greatest 
facility . 1 

It is expected that a report will soon be made by the joint com¬ 
mittee on accounting and reporting containing definite forms and 
procedure as a basis for discussion, which will suggest for the service 
as a whole a uniformity of practice with respect to the following 
subjects : 2 


1 Various meetings have been held with the committee on administrative bookkeeping of the Treasury 
Department and other department representatives. The forms of reports as modified after submission to 
the joint committee are found in Circular No. 20. 

2 The accounting forms and procedure suggested as a basis for discussion are found in Circulars Nos. 6.13. 
14, and 18. 






















































REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 19 


SUGGESTED EXPENDITURE ACCOUNTING FORMS AND REPORTS IN 
CONTEMPLATION FOR UNIFORM METHODS AND PROCEDURE. 

1. Departmental general ledgers. 

2. Appropriation and fund ledgers. 

3. Contract ledgers. 

4. Order claimants ledgers (when kept). 

5. Expenditure ledgers. 

6. Cost records. 

7. Stores ledgers. 

8. Nonexpendable property ledgers. 

9. Registers of appropriations, allotments, and transfers. 

10. Registers of contract encumbrances. 

11. Registers of order encumbrances. 

12. Registers of advances to disbursing agents. 

13. Registers of invoices. 

14. Registers of vouchers. 

15. Registers of pay rolls. 

16. Registers of voucher and pay-roll adjustments. 

17. Registers of unclaimed salaries and wages. 

18. Registersmf stores requisitions. 

19. Registers of estimates on construction completed. 

20. Daily reports to departmental general ledger bookkeeper. 

21. Daily reports from departmental general ledger bookkeeper to 
head of department. 

22. Daily report from head of department to the President and to 
the Secretary of the Treasury as a central office of the corporation. 

23. Daily report from the Secretary of the Treasury to the 
President. 

24. Monthly reports. 

25. Quarterly reports. 

26. Annual reports. 

It was the intention of the joint committee that these forms of 
expenditure accounting and reporting should be in addition to those 
which were to be prepared and recommended by the joint com¬ 
mittee on estimates and requests for appropriation and the joint 
committee on expenditure documents. 

Assumed Essentials to Accuracy of Information Pertaining 

to Subjects of Business. 

The first question to be decided in planning a system of accounts 
and reports is the classification of subjects concerning which infor¬ 
mation is needed. This having been done, it was assumed that the 
adoption of some method or adequate* means for determining the 
accuracy of records and reports is of paramount importance—that is 
to say, that the exercise of sound business discretion by officers of a 
large corporation depends on each of them having currently brought 
before him a full and true statement of facts concerning each subject 
which may be under consideration, and for the intelligent disposition 
of which he is responsible. In developing the work program, therefore, 


20 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

this further premise has been engaged, viz, that accuracy of infor¬ 
mation pertaining to any of the subjects above outlined requires: 

1. Precision as to standards for determining— 

(a) Specifications as to quality of goods upon which bids are 

requested. 

( b ) Specifications as to quality of goods for which open-market 

orders are issued. 

(c) The quality and quantity of materials, supplies, and equip¬ 

ment to be received under contracts and open-market 
orders. 

( d) The quality and quantity of materials, supplies, and equip¬ 

ment actually received. 

(e) The quality and quantity of materials, supplies, and equip¬ 

ment inspected or to be inspected. 

(f) The quality and quantity of materials, supplies, and equip¬ 

ment for which bills are received. 

(g) The quality and quantity of materials, supplies, and equip¬ 

ment for which payment vouchers are drawn, certified, 
and approved. 

(h) The quality and quantity of materials, supplies, and equip¬ 

ment in stores and represented by inventories. 

(i) The quality and quantity of materials, supplies, and equip¬ 

ment requisitioned and dispensed from stores. 

2. A business procedure which— 

(a) Will require accuracy of statement of fact. 

( b ) Will admit, as evidence of amounts due, only such docu¬ 

ments as are properly certified and verified by persons 
carrying on the transactions and having personal 
knowledge of facts, and which will admit of review: 

1. As to accuracy of description of goods or services 

requisitioned, ordered, delivered or rendered, 
received, inspected, dispensed from stores, or 
used. 

2. As to accuracy of verification and approvals. 

3. As to classifications and distribution to accounts. 

3. Provision for adequate means for locating responsibility as to— 

(а) Errors made in recording the facts of business in docu¬ 

ments or other records of original entry. 

(б) Errors in classification of the facts of business. 

(c) Errors in assembling or posting the facts to the accounts 

established as a means of bringing together all the data 
pertaining to each subject about which it is necessary 
to think. 

(d) Errors in statement or reporting of facts pertaining to 

each subject for administrative consideration. 

( e ) The receiving of goods which are inferior in quality or less in 

quantity than represented in the documents of business. 

(f) False certification as to the facts recorded in the docu¬ 

ments of business or in records of original entry. 

(g) The use of methods of inspection or audit which are not 

adapted to the verification of facts certified or of claims* 
presented for payment. 

(h) Administrative incompetence and wasteful management. 

( i ) Inefficient or unfaithful service. 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 21 

Consideration Given to Each of These Assumed Require¬ 
ments. 

1. Precision as to standards. 

WORK OF GENERAL SUPPLY COMMITTEE. 

In the first place, steps have been taken to coordinate the work 
relative to precision of standards, which had already been prosecuted 
with splendid result by the general supply committee, in the formula¬ 
tion of specifications for the purchase of supplies, in the classification 
of supplies, and in the cataloguing of the same. The members of 
this committee, however, had previously had before them only one 
of the administrative considerations to be taken into account, i. e., 
the advertising for proposals and the making of awards. The fullest 
cooperation between branches of the service having to deal with 
different problems of administration requires a classification which 
will serve equally well the purposes of persons making requisitions, 
issuing orders, advertising for bids, and the making of awards, receiv¬ 
ing goods which have been ordered and contracted for delivery, certi¬ 
fying to the quality and quantity of goods received, certifying to the 
quality and quantity of goods inspected, keeping stores, issuing and 
dispensing goods from stores, keeping expense and cost accounts, etc. 
One of the first steps taken, therefore, was to obtain the cooperation 
of the general supply committee in an effort to coordinate its work 
with other branches of the service in the development of a common 
classification and codification for supplies. 1 Further effort has been 
directed toward giving added facility to the establishment of standard 
specifications and the adoption of a business procedure which will 
require exactness of definition and expression, thereby making the 
work of the general supply committee a part of a general program for 
the improvement of the service. 2 

2. Accuracy of statements of fact. 

NEED FOR COMMON NOMENCLATURE. 

In the preparation for a business procedure which will require 
accuracy of statement of fact and which will admit as evidence only 
such documents as are properly certified, verified, and authenti¬ 
cated by persons carrying on the transactions, and who therefore 
have knowledge of the facts, an active campaign has been conducted 
from the start. The first assumed prerequisite to accuracy of state¬ 
ment is a common nomenclature throughout the service pertaining 
to objects of expenditure. This requirement is one of the first to be 
met in every large corporation. To meet it has been especially diffi¬ 
cult in the Government of the United vStates, because in one relation or 
another it buys nearly everything that is on the market. To attempt 
to lay the foundation for giving definiteness of expression in speci¬ 
fication for each of the several administrative purposes above 
described, to provide the means whereby each agent of the Govern¬ 
ment could understand exactly what was meant by the other, 

1 The general supply committee’s list of awards for the current year is completely codified, using the 
classification numbers suggested in Circular No. 19. 

2 Specification numbers are also given in the general supply committee’s list of awards. 



22 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


to make the entries on each document or record, and the terms of 
each certification or authorization specific, required that practically 
all things which are the subject of purchase and sale oe clearly 
defined; and since no definition can be successfully attempted with¬ 
out classification, it follows that practically all things bought and 
sold must first be classified. 

UNIFORMITY OF CLASSIFICATION. 

This classification is not only fundamental to accuracy of statement 
of fact, it not only lies at the foundation of intelligent direction and 
control, but it also is fundamental to any plan of cooperation among 
the many experts and scientifically trained men in the service. 

“Objects of expenditure” furnishes the only basis common to every 
department, bureau, and division, the only common subject concern¬ 
ing which each administrative agent is required to think. It is in 
this classification also that price and quantitative standards are to 
be found with reference to which conclusions as to economy and 
efficiency may be arrived at. This work was begun the first week of 
the inquiry and has been continuously prosecuted with a constantly 
broadening circle of experts in the service engaged upon it. Under 
less favorable circumstances, and with a less able corps of scientifically 
trained men, it would have been impossible of accomplishment. 

EXPERTS EMPLOYED ON CLASSIFICATION. 

At first the subject was taken up at the White House to mark 
out the more general classes which might be useful to all. 1 A first- 
outline classification having been formulated, it was critically con¬ 
sidered by the several committees of departmental experts, by the 
general supply committee, the Bureau of Standards, the Patent 
Office, the Civil Service Commission, and other expert divisions of 
Government. Definitions were formulated, and copies of the tenta¬ 
tive outline with definitions were then circulated, accompanied 
by a request for criticism and constructive suggestion. These having 
been received, a second issue was made, to be tested in the reclassi¬ 
fication of estimates for the year 1912, then just completed for sub¬ 
mission to Congress. 

IMPORTANCE OF EXACT EXPRESSION. 

While the reclassification was in progress (going to practically 
each head of division), the general subjects of classification as out¬ 
lined were apportioned among those who had to deal with expert 
and special administrative problems of business. 2 It was assumed 

1 Circular No. 1 was the first classification submitted for discussion; this was followed by Circular No. 10. • 

2 The committees assigned to this work were as follows: 

State Department.—John Ball Osborne, Miles M. Shand, Ward A. Fitzsimmons, Leonard A. Merritt. 

Treasury Department. —C. C. Van Leer, Chas. Boyd, W. W. Stevens, N. S. Thompson, G. H. Claybaugh, 
C. S. Pearce, C. N. McCroarty, L. O. Robbins, E. F. Quinn, T. D. Manchester, J. T. Hough. 

War Department. —J. C. Keiper, C. P. Daly, P. M. Anderson, Maj. Wm. B. Ladue, E. H. Block, A. Tyree, 
Emmet Hamilton, Maj. E. P. O’Hern, F. B. Wheaton, Maj. J. H. Rice, Capt. E. N. Johnston, Robert E. 
Shannon. 

Department of Justice. —O. J. Field, C. R. Sherwood, C. H. McGlasson, J. R. Gaskins, R. T. Strickland. 

Post Office Department. —James B. Cook, W. E. Buffington, D. W. Duncan, G. F. Stone, R. S. Taylor, 
C. R. Linfoot, A. L. Scribner, J. A. Bogan, C. B. Lingamfelter. 

Navy Department. —J. E. Alexander, L. E. Wiltberger, J. M. Torbet, Lieut. S. I. M. Major, A. H. Raynal-, 
Surg. M. S. Elliott, Paymaster S. E. Barber, E. F. Tolson. Lieut. W. L. Pryor, W. M. Wallace, Naval 



REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 23 


that if the classification met the demands of those who were required 
to prepare summaries and detailed reports, as exemplified in estimates, 
and also met every requirement of each man who had to think of 
administration in the capacity, of a technical expert, the result 
would be useful and would provide a common nomenclature for all. 
By process of subclassification the subjects were assigned and reas¬ 
signed until the best thought of several hundred highly trained men 
had been reflected in the results obtained. These results are now 
being returned to the White House and carefully edited to preserve a 
common principle throughout. 1 


THE ADOPTION OF A COMMON CODE. 

/ 

It is expected that the work of classification of objects of expendi¬ 
ture will be completed within the next two months. The plan is to 
have these results published as fast as completed and approved, in 
order to make them available throughout the Government, thereby 
giving to each person responsible for statements of fact on documents 
of business or in detail records, as well as those who are responsible 
for entries in summary records and the making of summary reports, 
the means whereby each record and report may convey the same 
meaning to the one who reads as was in the mind of him who wrote. 2 
Assuming a successful completion of this classification, this alone 
would be worth to the Government much more each year than the 
total cost of the inquiry. 

(3) Locating responsibility for errors. 


THE DEVISING OF UNIFORM DOCUMENTS OF EXPENDITURE. 


As has been stated, one of the subjects of primary importance 
pertaining to subjects of business is the devising and installing of 
documents of expenditure with prescriptions as to certification and 
authentication which will give them character as evidence. This is 
not only a primary essential to the audit of claims but is also funda¬ 
mental to the authentication of facts to be recorded in accounts and 
summarized in reports for the information of those charged with the 
direction of affairs. For the purpose of formulating and submitting 

Constructor Wm. McEntree, G. E. Yancey, Paymaster D. C. Crowell, W. M. Smith, Clyde Reed, Lieut. 
Commander D. W. Todd, Pickens Neagle.' 

Interior Department. —Samuel E. Slater, J. B. Callahan, A. D. Thompson, L. F. Schmeckebier, Geo. S. 
Pope, J. S. Hill, Eugene D. Sewall (classification examiner of the Patent Office. Under his direction about 
40 experts assisted in the work of classification of equipment), M. B. Hillegas, E. B. Fox. 

Department of Agriculture. —J. S. Chase, G. M. Rommel, E. M. Forbes, D. A. Teller, J. A. Arnold, 
H. J. Fegan, C. C. Clark, Harris P. Gould, Robert D. Milner, Geo. A. Bentley, Dr. N. A. Cobb, G. A. Bell. 

Department of Commerce and Labor. —Chas. E. Molster, Wilbur W. Fowler, Geo. C. Havenner, S. W. 
Stratton, Chas. R. Bartlett, Geo. K. Burgess, Irwin G. Priest, E. C. McKelvy, R. Y. Ferner, D. E. Douty, 
H. C. Dickinson, H. B. Brooks, Chas. F. Sponsler, W. F. Hillebrand, W. P. Harmon, E. B. Rosa. 

Civil Service Commission. —F. W. Brown. 

Interstate Commerce Commission. —Thos. F. Darden, James C. Wallace. 

Government Printing Office.— Seward T. Covert, B. L. Vipond. 

Library of Congress. — Herbert Putnam. 

Smithsonian Institution. —H. W. Dorsey. 

Botanical Gardens. —J. H. Cameron. 

1 The final results are published in Circular No. 19. 

2 Circular No. 2 is the only report of detail classification prepared by department committees which was 
published. The other reports were circulated in typewritten form and used as working papers by the 
committees at work. 




24 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

drafts as a basis for discussion a joint committee on “ expenditure 
documents” has been appointed, composed of: 

Mr. John C. Scofield, assistant and chief clerk War Department. 

Mr. W. F. Willoughby, Assistant Director, Bureau of the Census. 

Mr. Edward B. Fox, secretary of the committee on economy and 
efficiency of the Interior Department. 

Mr. M. O. Chance, Auditor for the Post Office Department. 

Mr. F. A. Cleveland. 

While the work of this committee is closely related to that of the 
committee on “accounting and reporting,” above described, the 
committee on 11 expenditure documents ” has been asked to give special 
attention to the character of these documents as evidence, the thought 
being that such document forms and procedure may be devised as 
will guarantee the accuracy of the data contained thereon, and will 
also give uniformity in practice throughout the many branches of the 
service. 1 

EXERCISE OF ACCOUNTING CONTROL. 

Provision for adequate means of locating responsibility for errors 
in classification and for the exercise of control over the accuracy of 
entries, postings, summaries, and conclusions reached is a part of the 
subject assigned to the joint committee on “ accounting and report¬ 
ing.” This has been discussed, and the following conclusions reached 
as to principle: 

(1) That provision should be made for the exercise of such control 
through the establishment of central controlling accounts. 

(2) That the totals carried in the controlling accounts should be 
taken from classified registers of documents, each document first 
being registered and numbered serially before being posted to detail 
or subsidiary accounts. 

(3) That the totals of the classified registers thus independently 
established from the documents of business themselves should be 
posted at regular periods to a general ledger in which controlling 
accounts alone would be kept. 

(4) That the classification of these registers and of these general 
ledger controlling accounts should correspond with and be deter¬ 
mined by the summaries of information required for the general 
reports, thereby enabling a general ledger bookkeeper in each depart¬ 
ment to report daily or at any time to the head of his department, 
and a general ledger bookkeeper for the Government as a whole to 
report daily to the President through the Secretary of the Treasury. 

(5) That the detailed information supporting such summary report 
would be obtained by trial balance or statements taken from the 
subsidiary or detailed ledgers kept under the control of the general 
ledger accounts from which the summary reports would be prepared. 2 

EVIDENCE REQUIRED AS BASIS FOR AUDIT. 

Assuming that a commonly understood language were used, and 
a procedure established for requiring that persons having knowledge 
of the facts shall make the record and certifications on documents 
of business, tests as to credibility of documents of expenditures as 


• 1 For forms of expenditure documents suggested see circular No. 6. 

2 See circulars Nos. 6, 13, 14,18, and 20. 



REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 25 

evidence would- require that errors in statement of fact should be 
developed currently as these documents pass from one person to 
another; i. e., that the verification shall not be based on hearsay and 
that the authentication and approval should be based on a review 
of the evidence presented by competent witnesses. 

MEANS FOR TESTING CREDIBILITY OF STATEMENT OF FACT. 

As to the first class of errors above described, however (errors in 
statement of fact on documents or records of original entry), it may 
happen that independent verification of accuracy of description by 
inspection, prior to authentication and approval, is necessary. To 
the extent that provision of this kind is essential to establish the 
credibility of documentary evidence presented, this should be by 
means of a procedure which will regularly and as a matter of business 
bring before an auditor or person asked to review the transaction 
evidence competent to prove the facts of— 

1. Goods received which are inferior in quality or less in quantity 
than represented in documents of business. 

2. False certification as to the facts recorded in documents of busi¬ 
ness, or in records of original entry, thereby making it definitely 
known to those receiving and certifying that the record evidence 
will at all times be present for showing competence and fidelity, as 
well as incompetence and infidelity, of persons in position of trust— 
persons who must be relied on for placing such evidence in the hands 
of the approving, auditing, and paying agents of the Government. 

RESPONSIBILITY FOR ADEQUACY OF PROCEDURE. 

Responsibility for the “use of methods of inspection and audit, 
which are not adapted to the verification of facts certified or of 
claims presented for payment/’ therefore is upon those authorized 
to promulgate an adequate procedure to govern the action of inspec¬ 
tors and auditors. As the present practices are varied, recommen¬ 
dations pertaining to procedure should be taken up as a distinct 
subject, closely related, however, if not handled by the same com¬ 
mittee as has before it the consideration of “expenditure docu¬ 
ments.” 

Standardization of Estimates and Requests for Appropri¬ 
ations. 

As a premise in relation to the work looking toward the standard¬ 
ization of estimates and the making of requests for appropriations, 
it is assumed: 

1. That the budget is a necessary instrument of legislative finan¬ 
cial control. 

2. That it is in consideration of the future financial needs that the 
problem of the legislator and the problem of the administrator meet. 

3. That the problem of the administrator is to exercise control 
over the current details of business—i. e., he must think about 
present actual transactions—and for this purpose needs complete 
and accurate current information. 

4. That the problem of the legislator is to exercise control over 
future business—i. e., he must think about future needs—and for 


26 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

this purpose should have the best information which lie can obtain 
from the administrator through reports with respect to past expendi¬ 
tures and results. 

RELATION OF ESTIMATES TO THE DATA OF ADMINISTRATION. 

The problem of economy and efficiency is the every-day problem of 
the administrator; economy is the measure which the administrator 
must apply to each result; efficiency is the test which he must apply 
to individual effort directed toward the accomplishment of each 
result. In order that he may think intelligently about the subject 
of his responsibility, therefore, the administrator must necessarily 
have each result obtained stated in terms of quality and quantity, 
and be able to measure quality and quantity of result by units of 
cost and efficiency. If he is to effectively direct and control, nothing 
short of full and accurate current information will enable him to 
succeed. 

LEGISLATIVE CONSIDERATION OF ECONOMY AND EFFICIENCY. 

The legislator must also think in terms of economy and efficiency. 
It is assumed, however, that the subject of his thought is results 
obtained by the administrator; that with him the question of econ¬ 
omy relates to the conservation of public funds and properties 
which have been placed in the hands of the administrator; and to 
the end that he may do so he asks the administrator to render him 
a report on his past doings and with respect to his future plans. 
The legislator, before he tries to think about furnishing funas for 
the carrying out of future plans, wants to know what has been 
done with the funds appropriated for carrying out past policies 
agreed on and what has been done toward the accomplishment of 
ends already approved; and it is in terms of past experience that 
future policies are to be formulated and estimates of future needs 
are to be financed. 

THE BASIS FOR COOPERATION BETWEEN LEGISLATURE AND ADMINIS¬ 
TRATOR. 

Without ability to make a full, accurate, and well-digested report 
the administrator would seem to be doubly handicapped; he him¬ 
self is without the basis for intelligent judgment in passing on current 
transactions which come before him; he is unable to render a satis¬ 
factory account of his stewardship, and therefore must rest under 
such suspicion as will cause those in position of legislative financial 
control to place increasing limitations on the exercise of discretion 
in the use of funds voted. Without full and adequate information 
before him the legislator is put in the position of being compelled 
to make a treaty with administrative subordinates who are able 
to give him relatively more intelligent answers to questions and 
are of relatively higher service in assisting to determine questions 
of policy than their superiors. Under such circumstances the choice 
forced upon the legislator is to deal close-fistedly with a stable but 
inelastic bureaucracy or to deal open-liandedly with administrative 
heads whose reports do not protect the legislator from acting igno¬ 
rantly. It has been accepted as a principle, therefore, that cooper- 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 27 

ation between the legislative and executive branches of the Govern¬ 
ment must be based on mutual confidence, and that mutual confidence 
can exist to the extent only that each may have full knowledge of 
the business in hand. 

NO SPECIAL RECORDS REQUIRED TO GIVE CONGRESS INFORMATION 

DESIRED. 

The annual Book of Estimates of the administrative heads to 
Congress and the supplementary information furnished on request 
are in the nature of reports of officers of the corporation to the board 
of directors upon which they ask a vote of confidence in the form of 
further grants of funds. The information asked for by Congress once 
a year is such, and such only, as is needed by the administrator every 
day; assuming that the officer makes adequate provision for keeping 
the facts of business before himself, no special records need lie kept to 
inform the legislator. Inability to answer questions raised by Con¬ 
gress means that essential facts have not been collected and considered 
by administrators. All that is required by Congress is that the thou¬ 
sand millions of dollars spent by officers annually be analyzed and 
summarized for report once a year. This requirement carries with 
it the suggestion that for the intelligent expenditure of a thousand 
million dollars quite as much information is needed. That for the 
purpose of either the data of business must be currently analyzed 
and summarized in order to bring out the significant relations and 
to enable officers to apply the same test of judgment each day and 
to each transaction as the legislator is called upon to apply once 
each year. The same road must be traveled if the ends of the 
institution are to be reached, but the administrator is asked to go 
over the ground as the director of the forces of government; the 
legislator simply follows for purposes of review. For either and 
both purposes, before the facts of business can be stated in such 
form that they may be summarized and brought into a significant 
relation, before the results of the broad activities of government 
may be appreciated, it is necessary to adopt a common principle of 
classification of expenditures and a common language for the 
expression of needs. 

Report on form of estimates. 

THE WORK OF STANDARDIZING ESTIMATES. 

The reclassification of estimates is one of the first applications 
made of the uniform classification tentatively adopted by the sev¬ 
eral departmental committees on economy and efficiency. Request 
for such reclassification was sent out November 19, asking that 
reports be returned early in December. While this was a serious 
task to be undertaken and a severe test of the principle of cooperation 
adopted by the President for the inquiry, coming, as it did, at a time 
when the largest demands are made on the service m preparation for 
the opening of Congress, under the supervision of the department 
committees the work was prosecuted with vigor, llie reports from 
the several departments having come in, a joint committee on ioims 
of estimates and requests for appropriations was appointed by repre- 


28 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

sentatives of the several committees in conference at the White House, 
as follows: 

Mr. R. M. Pin dell, jr., chief clerk. Department of Commerce and 
Labor. 

Mr. E. M. Kennard, chief bookkeeper of the Division of Accounts, 
Department of Justice. 

Mr. C. C. Carroll, chief clerk, Bureau of Animal Industry, Depart¬ 
ment of Agriculture. 

Mr. Clyde Reed, clerk, class IV, Department of the Navy. 

Mr. M. O. Chance, Auditor for the Post Office Department. 

Mr. F. A. Cleveland. 

CONCLUSIONS OF COMMITTEE ON FORMS OF ESTIMATES. 

The first general plan submitted for the consideration of this joint 
committee was a report made by the committee on economy and 
efficiency of the Department of Commerce and Labor, and after much 
discussion the following general conclusions were reached: 

1. That as a basis for the consideration of estimates there should 

be a report to Congress showing in detail the transactions 
of departments, summarized in such manner that the 
most general statement would be in the form of a state¬ 
ment for the Government as a whole. 

2. That this general summary should be supported by depart¬ 

mental summaries. 

3. That each departmental summary in turn should be supported 

by a detailed report of classified expenditures submitted 
as a basis for the consideration of departmental needs, 
with summaries by bureaus and major divisions or institu¬ 
tions, etc. 

4. That each summary should be so annotated or indexed to 

the supporting schedules or details in such manner as to 
show three sets of relations, viz: 

a. Total expenditures classified in such manner as to 
show the amounts expended for: 1 

(1) Salaries, wages, and other compensation for per¬ 

sonal service. 

(2) Traveling expenses. 

(3) Subsistence (while not in traveling status). 

(4) Garage and stable service. 

(5) Freight, expressage, dray age, and haulage. 

(6) Telegraph, telephone, postal, and commercial 

messenger service. 

(7) Printing, engraving, lithographing, and binding. 

(8) Advertising and publication of notices. 

(9) Heat, light, and power. 

(10) Special and miscellaneous services (other than 

personal). 

(11) Materials. 

(12) Stationery, drafting, photographic, educational, 

and scientific supplies. 


1 This classification as finally amended has been promulgated by the Secretary of the Treasury and 
Comptroller of the Treasury as Treasury Circular No. 36, dated June 21,1911. 




REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 29 


4. That each summary should be so annotated or indexed to 
the supporting schedules or details in such manner as to 
show three sets of relations, viz—Continued, 
a. Total expenditures classified in such manner as to 
show the amounts expended for—Continued. 

(13) Fuel (including burning and illuminating gases, 

oils, and liquids). 

(14) Mechanics’ supplies. 

(15) Drugs, chemicals, cleansers, hospital and labora¬ 

tory supplies. 

(16) Wearing apparel. 

(17) Forage. 

(18) Provisions. 

(19) War supplies and accessories. 

(20) Special and miscellaneous supplies. 

(21) Equipment (including furniture and furnishings). 

(22) Structures. 

(23) Parts. 

(24) Live stock. 

(25) Land. 

(26) Purchase-price expenditures for rights—to de¬ 

mand, control, or enforce action, or to act. 

(27) Kents, royalties, and other current-expense ac¬ 

cruals for easements, franchises, permits, and 
privileges. 

(28) Payment of debt. 

(29) Interest. 

(30) Refunds. 

(31) Awards and indemnities. 

(32) Sinking funds. 

(33) Insurance and depreciation funds. 

(34) Pensions, retirement salaries, providence, gratui¬ 

ties, subsidies, and burial expenses. 

(35) Trade subsidies and bounties. 

(36) Losses. 

(37) Contingencies and miscellaneous. 

(38) Repairs (current upkeep). 

( b ) Total expenditures classified by legislative titles as 
required for the consideration of congressional com¬ 
mittees, the present requirement being: 1 

(1) Civil establishment. 

(2) Foreign intercourse. 

(3) Military establishment. 

(4) Naval establishment. 

(5) Indian affairs. 

(6) Pensions. 

(7) Public works. 

(8) Postal service. 

(9) Miscellaneous, including the District of Columbia. 

(10) Permanent annual appropriations. 


1 These are the summary titles given in the Book of Est imates. The same general classification, expanded, 
however, in such manner as to show appropriation acts instead, is made the classification in the forms sub¬ 
mitted for classification of the budget for the fiscal year 1913. 



30 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 

4. That each summary should be so annotated or indexed to 
the supporting schedules, or details in such manner as to 
show three sets of relations, viz—Continued. 

( c ) Total expenditures classified by departments or or¬ 
ganization divisions submitting the same: 

(1) For purposes of the most general summary— 

(a) Legislative branch. 

( b) Executive proper. 

(c) The courts. 

(d) Administrative departments. 

(e) Independent offices. 

(f) The District of Columbia. 

(2) For the purpose of summarizing the expenditures 

of the legislative branch: 

(a) The United States Senate. 

(b) The House of Representatives. 

(c) Library of Congress. 

( d ) Botanic Garden. 

(e) Public Printer. 

(f) Monetary Commission. 

(3) For the purpose of summarizing the expenditures 

of the Executive (proper): 

(a) The President. 

(b) The Vice President. 

(c) Office of the President. 

(d) Civil Service Commission. 

(e) Tariff Board. 

(f) Commission of fine arts. 

(g) Economy and efficiency inquiry. 

(4) For the purpose of summarizing the expenditures 

of the executive departments: 

(a) Department of State. 

(b) Department of the Treasury. 

(c) Department of War. 

(d) Department of Justice. 

(e) Post Office Department. 
if) Department of the Navy. 

(g) Department of the Interior. 

(h) Department of Agriculture. 

(i) Department of Commerce and Labor. 

(5) That the estimates showing summaries and details 

of expenditure and of prospective needs should 
be reported separately from the requests for 
appropriations. 

FORM OF REQUESTS FOR APPROPRIATION. 

It was further tentatively concluded that the form of requests for 
appropriation should be such as to suggest the form in which the 
appropriations are desired in order to give to the legislature the most 
effective financial control, and to the administrator the largest dis¬ 
cretion in the exercise of administrative control over economy and 
efficiency in obtaining results desired; and it might also indicate the 
conditions which it might be thought desirable to attach to grants, 


REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 31 

by resolution or otherwise, such as requirement pertaining to the kind 
of detailed report to be made to and by administrative heads account¬ 
ing for funds expended, requirement as to cost keeping and service 
records, requirement with respect to the preparation of pay rolls for 
audit, and the audit of pay rolls in accordance with established 
salaries and grades, etc. 

The purpose of the suggested triple classification of expenditure 
data is to enable Congress—- 

1. By means of the first summary by objects of expenditure to 

follow any detail in which any member might be interested 
down to details measurable in standards of price and result. 

2. By means of the third summary by organization units to see 

the cost of each branch, department, or institution as a 
whole, and analyze its functions in terms of cost of result. 

3. By means of the second summary bv legislative titles to know 

how each organization unit is financed through legislative 
authorizations. 

Steps Taken Toward Devising and Installing Detailed Expense 
and Cost Records and Fund Accounts. 

EXPERIENCE THE BASIS FOR ACTION. 

To the end that the forms devised for controlling detailed expense 
and cost accounts may be based on experience, it has been thought 
best to begin with a few branches or divisions of the service as types. 
This will give definite background for consideration of accounting 
requirements by committees of departmental experts while recom¬ 
mendations are being formulated for general application. 

THE BUREAU OF THE CENSUS. 

As typical of one general class of Government function, namely, 
scientific investigations, the Bureau of the Census was taken. Under 
the general supervision of the Assistant Director of the Census, forms 
for expense and cost accounting have been devised. These are now 
ready for submission to the joint committee on “accounting and 
reporting/ 7 the intention being to install as of January 1, 1911. 1 

LIGHTHOUSE ESTABLISHMENT. 

The Lighthouse Establishment was thought to be another class 
which would give opportunity for testing out processes having to do 
with the expense accounts and costs of operating institutions. To 
the end that the details of a constructive plan might be brought 
before the committee on “accounting and reporting” promptly for 
their consideration, Mr. W. L. Soleau, disbursing clerk of the Depart¬ 
ment of Commerce and Labor, was detailed by the Secretary of 
Commerce and Labor to the White House. It is expected that 
within the next month the suggested forms for accounting and report¬ 
ing, as well as a suggested procedure covering the same, will be ready 


i The volume of work of the bureau and the number of the divisions affected made it seem desirable 
to make the installation gradually. Changes have been in progress since March 1, 1911. 





32 REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 


for discussion, modification, and adoption, and that installation may 
be promptly begun. 1 

GENERAL INSTALLATION PLANNED. 

Growing out of such experience and the work of the joint com¬ 
mittee on “expenditure accounting and reporting,” it is thought that 
a plan for general installation of appropriation and fund accounts 
may be devised and ready for installation throughout the depart¬ 
ments as of July 1, 1911, and as a basis for establishing central 
controlling accounts that registers of documents of expenditures 
may be ready for installation at the same time. 

UTILIZATION OF MECHANICAL TABULATING PROCESSES. 

In order that the cost of obtaining the information currently 
required, as well as the supplementary data which may be from time 
to time desired either by the legislator or by administrative heads, 
may be reduced to the minimum, plans have been made to utilize 
automatic mechanical tabulating processes such as have been used 
to advantage in large private corporations for similar purposes. To 
the end that the technical details involved in such processes may be 
given adequate consideration, they will be made the subject of a 
separate interim report. 2 

Advantages of Correlating the Investigations in Progress 

in the Several Departments Through the President’s 

Inquiry. 

In the past, investigations into the economy and efficiency of 
administrative departments have been made the subject of frequent 
congressional inquiry. While such inquiries would at all times 
seem desirable, it goes without saying that the legislator is not in 
position to carry out a constructive program. The constructive 
value of such inquiry must necessarily lie in recommendation to be 
executed by administrative branches. 

Analysis of the forms and methods and procedure used in the 
various departments shows much diversity in practice. The largest 
possibilities for broad and effective cooperation, for united action in 
the accomplishment of desired ends, for the consideration by depart¬ 
ment heads of subjects of common concern, or by the President as 
the one primarily responsible for the details of the business of the 
Government as a whole, suggest the advantage of correlating the 
investigations now in progress and of utilizing the President’s 

1 As this bureau undertook to carry on an active program of reorganization and revision independently 
this part of the original plan of the inquiry was suspended. 

2 A re port on the subject of labor-saving devices is in preparation. The Department committees on the 
subject are: 

Department of Agriculture— C. C. Clark (chairman), Joseph Abel. 

Department of War. —Capt. M. R. Thorp (chairman), J. C. Keiper. - 

Department of the Navy. —William M. Smith (chairman), R. H. Moses. 

Department of Justice. —Joseph P. Rudy, Joseph R. Mickle. 

Department of Commerce ana Labor. —Voler V. Viles (chairman), Nicholas E.Eckhardt, jr. 

Department of State. —Howard R. Barnes (chairman), Wallach A. McCathran. 

Department of the Interior.— E. B. Fox (chairman), Laurence F. Schmeckebier. 

Post Office Department— W. C. Fitch (chairman), J. Ernest Price. 

Department of the Treasury.— J. L. Wilmeth (chairman), Guy N. Norwood. 

Government Printing Office— Samuel Donnelly (chairman), J. K. Wallace. 




REPORT ON PLAN OF INQUIRY AND PROGRESS OF WORK. 33 

inquiry into economy and efficiency for furthering the work of each 
department and agency by making it part of a general constructive 
program. As rapidly as a common basis for cooperation may be 
found and conclusion reached on subjects of joint consideration, 
! which may be adopted as a basis for common action, the representa¬ 
tives of each department may carry forward the constructive work 
knowing that the results of all will fit into a common institutional 
plan. 1 

Yours, truly, Frederick A. Cleveland. 


1 Aside from the general committee appointed by the head of each department to cooperate in the Presi¬ 
dent’s inquiry, each department has detailed representatives to the constructive work for the purpose of 
making effective Treasury Department circulars Nos. 34, 35, and 36. The following persons were detailed: 

Department of Agriculture. —F. W. Legge (chairman), E. A. Melzar, W. L. Shuck, F. B. Linton, James L. 
Chase. 

Navy Department. —Pay Inspector H. A. Dent, Paymaster Cecil S. Baker, Paymaster William C. Fite. 
Department of Commerce and Labor. —William L. Soleau, George Johannes, Scott Nesbit. 

Department of Justice. —J. H. Mackey, E. M. Kennard, C. R. Sherwood. 

Treasury Department. —J. N. Baker, Harry Coope, F. A. Birgfeld, W. W. Eldridge. 

Department of the Interior. —Irvin Rittenhouse, Lawrence P. Worrall, A. H. Thompson, David E. 
Thomas, John D. McChesney, Victor G. Croissant, Thomas W. Baker, William M. Thompson, Joshua 
B. Callahan. 

Department of State. —Thomas Morrison, Ward A. Fitzsimmons, Clarence E. Gauss. 

Post Office Department.— Charles H. Fullaway, Louis M. Bartlett, R. S. Tower, W. E. Buffington, E. F. 
Whitney. 

War Department.— Col. William S. Pierce, Maj. William B. Ladue, George R. Taylor, D. J. Barton. 


o 




a 5 PRESIDENT'S INQUIRY IN RE ECONOMY AND EFFICIENCY 

% • 


QUESTIONS TO BE ANSWERED 
AND MEMORANDUM OF INSTRUCTIONS 

TO BE FOLLOWED IN THE PREPARATION OF 
REPORT (FORM 6) ASKED FOR ON 
THE SUBJECT OF 


THE HANDLING AND FILING 
OF CORRESPONDENCE 


CIRCULAR NO. 5 



WASHINGTON 

1911 







V 



7 
























3 


HANDLING AND FILING OF CORRESPONDENCE. 

In order that a complete and specific description of the method and 
procedure followed by each division or section of the service in the 
handling and filing of correspondence may be obtained, it is desired 
that full answers be given to the questions hereafter set forth so as to 
show each step taken in treating a piece of correspondence from the 
time it is received in a particular division or section until it leaves the 
same or is permanently filed therein. Special forms (Nos. 6 and 6a) 
will be used in preparing the answers to the questions. 

The term “ division ” will be interpreted as desired by each depart¬ 
ment, as representing the department, bureau, division, section, or 
other office, the intention being to subdivide the work and to have 
each report made up and signed by persons cognizant of the facts. 

The terms “communication” and “letter,” for the purpose of this 
report, will be understood to include anything whereby intelligence 
or information is conveyed from one person to another by means of 
writing or printing on paper. 

In preparing the report each question will be written in small let¬ 
ters (lower case) in the column bearing the caption “Question,” the 
general group or class being written in caps or underscored. 

The answer will be written in the column bearing the caption 
“Answer,” and the first line of the answer will be opposite the first 
line of the question. 

Exhibit A is an illustration of the form to be followed in preparing 
the answers to questions 1 to 10 and 18 under the heading “Receiv¬ 
ing and opening.”' This will serve as a guide in answering questions 
under the other headings. The questions and answers are to be 
written single spaced. Three spaces are to be left between answers. 
Use a new sheet in answering each alphabetical group of questions. 

In each case when it is asked by whom a certain act is performed 
it is desired that both the name and service designation of the indi¬ 
vidual be given. 

The report is to be prepared in triplicate by carbon process either 
by a member of the Joint Committee on the Handling and Filing of 
Correspondence or by the chief of each division of the department, 
under the direction and supervision of a member of the Joint Com¬ 
mittee or of the Committee on Economy and Efficiency. 

The original report is to be sent to the White House; the first 
carbon is to be retained in the central office of the department, bureau, 
board, or commission; the second carbon is to be retained by the 
chief of the division or section from which the report is sent. The 
original and the first carbon copy are to bear the signatures of the 
persons preparing and approving the same. A “first-sheet” is to be 
used as the first page of each report; for the following pages “supple¬ 
mentary sheets ” (Form 6a) will be used. 

By order of the President. 

Charles D. Norton, 

Secretary to the President . 

February 1 , 1911. 

101968—11 




3 




Questions to be answered by persons^in"each n division'of the service 
who are familiar with the following groups or classes of 
processes employed in the handling of 
correspondence: 


Pertaining to 

INCOMING CORRESPONDENCE. 

A. RECEIVING and OPENING. 

B. BRIEFING. 

C. RECORDING and INDEXING. 

D. DISTRIBUTING. 

J. FILING INCOMING AND COPIES 


Pertaining to 

OUTGOING CORRESPONDENCE* 

E. PREPARING. 

F. BRIEFING.* 

G. RECORDING and INDEXING. 

H. COPYING. 

I. DISPATCHING. 

OF OUTGOING CORRESPONDENCE. 


INCOMING CORRESPONDENCE. 


A. RECEIVING AND OPENING. 

1. What is the estimated number of written or printed communica¬ 

tions received annually which pertain to your division ? 

2. Into what general classes may they be divided, and what is the 

estimated number of communications in each class received 
annually ? 

3. What is the estimated number of communications received 

annually in your division which, not pertaining thereto, are 
transmitted to other divisions for treatment ? 

4. How and by whom is such mail transmitted to other divisions ? 

5. What per cent of the correspondence pertaining to your division 

is regularly received therein direct (i. e., unopened) ? 

6. By whom is such mail received ? 

7. Bv whom opened? 

8. What per cent of the correspondence pertaining to your division 

is received indirectly (i. e., after having previously been 
opened in another division) ? 

9. In what division or central office is such mail previously opened? 

10. By whom is such previously opened mail received in your division ? 

11. Is incoming mail stamped with date of receipt? 

12. If so, on face or back, and by whom? 

13. Give facsimile of received stamp and any other stamps placed 

upon incoming mail with any blanks thereon filled in, and 
state who makes entry or entries in the blank spaces of the 
stamp and what purpose such entry or entries serve. 

14. Is a serial, or file number, or both, placed on incoming mail? 

15. What purpose do they serve ? 

16. Is the numbering continuous, or is a new series of numbers com¬ 

menced at the beginning of each calendar year or other period ? 

17. What precaution is taken to protect the Government against loss 

of valuable inclosures found in mail at time of opening? 

5 


6 THE HANDLING AND FILING OF CORRESPONDENCE. 

18. State the names and salaries of persons engaged in opening 
mail, the estimated portion of his whole time consumed by 
each person in such work, and the cost thereof. (See illus¬ 
tration in Exhibit A.) 

B. BRIEFING. 

1. Is any brief made of letters pertaining to your division; and if so, 

by whom ? 

2. Is any brief made in your division of letters not pertaining thereto, 

but received therein, and after opening transmitted to some 
other division ? If so, by whom ? 

3. Describe character of brief in either or both of above cases, state 

whether made by the typewriter, pen, or otherwise, and give 
estimated average number of words used in briefing each 
letter. 

4. What is the purpose of such briefs ? 

5. If special forms are used in briefing, attach copies of same filled 

out to illustrate their use. 

6. Is any substitute used for briefing, such as underscoring the prin¬ 

cipal subjects of a letter, etc. ? If so, give illustration or other¬ 
wise describe fully. 

7. State the names and salaries of persons engaged in briefing incom¬ 

ing correspondence, the estimated portion of his whole time 
consumed by each person in such work, and cost thereof. 
(See illustration in Exhibit A.) 

C. RECORDING AND INDEXING. 

1. What, if any, records are kept of incoming correspondence? 

2. Describe the records, whether bound, loose-leaf, or card, and attach 

forms or sample pages filled out in the manner currently 
employed (by typewriter, pen, etc.) to illustrate their use. 

3. What entries are made in the records from each communication 

and what is the purpose of such entries ? 

4. Is any record kept of incoming correspondence opened in your 

division, but transmitted to other divisions for answer? 

5. What is the purpose of such record ? 

6. Is an index kept of incoming correspondence or to the record 

thereof ? 

7. Describe the index, whether bound, loose-leaf, or card, and attach 

form or sample pages filled out in the manner currently em¬ 
ployed (typewriter, pen, etc.) to illustrate their use. 

8. What items of information does the index contain ? 

9. Is the index kept by names or subjects or otherwise ? 

10. To what extent is the index cross-referenced ? 

11. Is an abbreviated notation used for the purpose of indexing and 

cross-indexing ? If so, give illustration of each class and use. 

12. If more than one index and cross-reference card is made for each 

incoming communication, state whether they are made out in 
one operation bv a duplicating process, or each filled out 
separately. 

13. State number of volumes and pages thereof, also number of loose 

leaves or cards used annually in recording and indexing incom¬ 
ing correspondence. 


THE HANDLING AND FILING OF CORRESPONDENCE. 


7 


14. State the names and salaries of persons engaged in recording and 
indexing incoming correspondence and the estimated portion 
of his whole time consumed by each person on such work and 
the cost thereof. (See illustration in Exhibit A.) 

D. DISTRIBUTING. 

1. Into what classes, if any, is incoming correspondence divided? 

2. By whom is such work done? 

3. What is the method of distribution? Describe use of envelopes 

or other forms employed and attach, filled out, copies of same 
to illustrate their use. 

4. What notations or entries are made on the letters for the purpose 

of distribution? 

5. Is any record (other than notation or entries on the letter itself) 

made of the distribution either to other divisions or in your 
division of incoming letters, and, if so, describe the same. 
Show character of entries and attach samples of forms used, 
filled out in the manner currently employed (typewriter, pen, 
etc.) to illustrate their use. 

6. What course is followed to promptly distribute letters which 
require immediate attention ? 

7. State names and salaries of persons engaged in distributing 
incoming correspondence, the estimated portion of his whole 
time consumed by each person on such work and the cost 
thereof. (Soe illustration in Exhibit A.) 

OUTGOING CORRESPONDENCE. 

E. PREPARING. 

1. What is the approximate number of communications prepared 

in your division annually? 

2. What per cent of the communications are typewritten letters? 

3. What per cent of the communications are handwritten letters? 

4. What per cent of the communications are printed forms ? 

5. What per cent of the communications are in other forms ? 

6. What portion of the correspondence referred to in question E 1 

consists of mere acknowledgments ? 

7. What portion of the correspondence referred to in question E 1 

is in the form of an indorsement ? 

8. What is the system of referring communications to individuals 

in your division for reply ? 

9. What means are employed to insure a prompt reply by your 

division to important communications ? 

10. Are all letters dictated to stenographers, or are letters prepared 

in other ways? If so, state in what different ways letters 
are prepared and per cent of each. 

11. To whom successively are letters submitted from the time of 

their composition until they are signed ? 

12. What system' of initialing is* employed to fix responsibility at 

various stages ? 

13. Who signs letters of your division? 

14. What per cent of outgoing correspondence bears autograph 

signature ? 


8 


THE HANDLING AND FILING OF CORRESPONDENCE. 


15. What per cent of outgoing correspondence bears hand-stamped 

signature ? 

16. What per cent of outgoing correspondence has the name of the 

officer from whom it emanates printed therein in place of his 
signature ? 

17. What papers are attached to letters when presented for signature ? 

18. What is the system of insuring that inclosures will be made? 

19. What data is placed on a letter to show that it should have an 

inclosure ? 

20. Do the inclosures pertaining to each letter remain with the letters 

or within the envelopes from the time the letters are written 
until they are dispatched ? 

21. If separated at any time, at what stage are they separated and 

what system is employed to bring inclosures and letters 
together again ? 

22. By whom are the envelopes addressed ? 

23. State what proportion of the envelopes are typewritten, addressed 

by hand, and in other wa3^s. 

24. Are open or transparent face envelopes used and to what extent? 

25. Does the envelope pertaining to each letter remain with the same 

from the time it is written until the letter is dispatched ? 

26. If separated at any time, at what stage is the separation made 

and what system is followed to bring the envelope and letter 
together again ? 

27. What is the system for insuring that things promised in a letter 

will be done ? 

28. What is the system for insuring that directions or instructions to 

subordinates or other individuals, contained in the letters, will 
be followed ? 

29. What is the course of letters after signature until they are copied, 

or if not copied, inclosed in their envelopes ? 

30. How many, if any, carbon copies are made of letters ? 

31. What is the purpose of such carbons? 

32. Are rubber signature stamps used upon the retained carbon 

copies of outgoing letters ? 

33. By whom are carbon copies so stamped? 

34. What precaution is taken to insure that the carbon is a true 

copy of the original letter ? 

35. To what extent is the same data, such as signatures and initials, 

etc., on the original letter placed upon the carbon copy thereof ? 

36. State the names and salaries of persons engaged in preparing 

correspondence, the estimated portion of his whole time 
consumed by each person on such work, and the cost thereof. 
(See illustration in Exhibit A.) 

F. BRIEFING. 

1. Is any brief made of outgoing letters addressed to officers, 

individuals, or concerns outside of your executive department ? 

2. Is any brief made of outgoing letters addressed to officers or 

individuals within your executive department? 

3. Describe the character of brief in each of the above cases and 

state estimated average number of words used for briefing each 
letter. 


THE HANDLING AND FILING OF CORRESPONDENCE. 9 

4. What is the purpose of such brief? 

5. If special forms are used in briefing, attach copies of same filled 

out to illustrate their use. 

6. State the names and salaries of persons engaged in briefing out¬ 

going correspondence, the estimated portion of his whole 
time consumed by each person on such work, and the cost 
thereof. (See illustration in Exhibit A.) 

G. RECORDING AND INDEXING. 

1. What, if any, records other than press-copy books or carbon 

copies are kept of outgoing correspondence ? 

2. Describe such records, whether bound, loose leaf, or card, and 

attach forms or sample pages filled out to illustrate their use. 

3. What entries are made in the records from each communication, 

and what is the purpose of such entries ? 

4. Is an index kept of outgoing correspondence or to the record 

thereof ? 

5. Describe the index, whether bound, loose leaf, or card, and 

attach form or sample pages filled out in the manner currently 
employed (typewriter, pen, etc.) to illustrate its use. 

6. What items of information does the index contain ? 

7. Is the index kept by names or subjects or otherwise ? 

8. To what extent is the index cross-referenced ? 

9. Is an abbreviated notation used for the purpose of indexing and 

cross-indexing? If so, give illustration of each class and use. 

10. If more than one index or cross-reference card is made for each 

outgoing communication, state whether they are made out in 
one operation by a duplicating process or each filled out 
separately. 

11. Are the records of outgoing correspondence up to date? 

12. If not, to what extent are they in arrears? 

13. State the number of volumes and pages thereof, also the number 

of loose leaves or cards used annually for recording and index¬ 
ing outgoing correspondence. 

14. State the names and salaries of persons engaged in recording and 

indexing outgoing correspondence, the estimated portion of 
his whole time consumed by each person on such work, and 
the cost thereof. (See illustration in Exhibit A.) 

II. PRESS COPYING. 

1. Are the originals of all outgoing letters press-copied? If not, 

what classes of correspondence are press-copied, and wliat 
classes dispatched without copying ? 

2. Give name and style of press-copy machine. 

3. Is the press copy in the form of a bound book or loose sheet? 

4. Are press-copy books indexed? 

5. What items of information do such indexes contain ? 

6. By whom is the press copying done ? 

7. Is more than one press copy taken; and if so, what use is made 

thereof ? 


10 THE HANDLING AND FILING OF CORRESPONDENCE. 

8. State the names and salaries of persons engaged in press copying, 
the estimated portion of his whole time consumed by each per¬ 
son on such work, and the cost thereof. (See illustration in 
Exhibit A.) 

I. DISPATCHING. 

1. What is the course of letters after press copying? 

2. By whom are letters placed in the envelopes? 

3. By whom are inclosures placed in the envelopes? 

4. What is the system to insure that signed letters are mailed? 

5. What is the method of sealing envelopes ? If sealed by machine, 
^ give name and style of machine. 

6. Are folding machines used? If so, give make and style of ma¬ 

chines and class of matter folded thereby. 

7. State the names and salaries of persons engaged in dispatching 

correspondence, the estimated portion of his whole time con¬ 
sumed by each person on such work, and the cost thereof. (See 
illustration in Exhibit A.) 

J. FILING OF CORRESPONDENCE. 

Organization. 

1. What is the approximate number of communications filed 

annually ? 

2. State the names and salaries of persons engaged in filing cor¬ 

respondence, the estimated portion of his whole time consumed 
by each person on such work, and the cost thereof. (See illus¬ 
tration in Exhibit A.) 

3. What equipment is used for filing correspondence ? 

4. Describe purpose and use of envelopes, jackets, cards, forms, or 

other like equipment employed in filing correspondence, and 
attach sample of the same filled out in the manner currently 
employed (typewriter, pen, etc.) to illustrate their use. 

5. What equipment is used for filing index cards ? 

System of filing. 

6. State specifically and in detail the system under which letters 

and other documents are filed. 

7. Are the files arranged numerically, alphabetically, chronologi¬ 

cally, geographically, by subjects, or otherwise? 

8. Are letters and other papers filed folded or flat, vertically or 

horizontally ? 

9. Is correspondence filed openly or in jackets or folders ? 

10. Are press or carbon copies of outgoing letters filed with the docu¬ 

ments or commmiications in the particular case to which they 
refer, or separately ? 

11. If press or carbon copies of outgoing letters are bound, state how, 

and whether chronologically, by subjects, or otherwise. 

12. Describe fully the index to the files, whether bound, loose leaf, or 

card, and attach forms or sample page fdled out to indicate 
tlieir use. 

13. Is the irfcieX arranged numerically, alphabetically, chronologi¬ 

cally, geographically, by subjects or otherwise? * 

14. What items of information does the index contain? 

15. To what extent are the indexes cross-referenced? 


THE HANDLING AND FILING OF CORRESPONDENCE. 11 

Consultation of files. 

16. What is the system under which letters or other documents in the 

files may be consulted or withdrawn ? 

17. When letters or other documents are withdrawn from the files, 

what evidence is placed in the files to show the fact of with¬ 
drawal and the whereabouts of the document? 

.i 

Disposition of old files. 

18. Are the files divided into current and storage files; that is to 

say, are old documents which are rarely if ever consulted 
finally withdrawn from the files containing current documents 
and placed in a separate file? 

19. Are any classes of letters and documents destroyed at the expira¬ 

tion of regular periods? If so, state with reference to each 
class how long a period they are kept before destruction. 


Form 6. 

EXHIBIT A. Page 1. 

The President’s Inquiry in re Economy and Efficiency. 

Department..I Date as of which report is pre- 

Board, Commission, j pared, , 

Office, or Bureau,/ 


Division_ 

Building_ 

Location of building: 


Prepared by- 


Location of office in building. 


Reviewed and approved by— 


(Use a different first sheet for each division or section reported on.) 


QUESTION. 


ANSWER. 


A. RECEIVING and OPENING. 


1. What is the estimated 
number of written or printed 
communications received an¬ 
nually which pertain to your 
division ? 

2. Into what general class¬ 
es may they be divided, and 
what is the estimated num¬ 
ber of communications in 
each class received annually ? 


3. What is the estimated 
number of communications 
received annually in your 
division which, not pertain¬ 
ing thereto, are transmitted 
to other divisions for treat¬ 
ment ? 


124,000 


Incoming correspondence may be di¬ 
vided as follows: 

Number of 
communi- 


Class. . cations 

annually. 

Miscellaneous letters_ 45, 000 

Applications for entry of peri¬ 
odicals as second-class mat¬ 
ter. _ 5,500 

Applications for registry of 

news agents_ 500 

Quarterly reports from post¬ 
masters of periodical post¬ 
age collected_ 43, 000 

Reports of dispatch of unrated 

short-paid matter_ 30,000 

1,500 


12 


























THE HANDLING AND FILING OF CORRESPONDENCE. 


13 


Form Ga. EXHIBIT .A.—Continued. Page 2. 

The President’s Inquiry in re Economy and Efficiency. 


QUESTION. 

A. RECEIVING and OPENING 

(continued). 

4. How and by whom is 
such mail transmitted to 
other divisions ? 

5. About what per cent of 
the correspondence pertain¬ 
ing to your division is reg¬ 
ularly received therein direct 
(i. e., unopened) ? 

6. By whom is such mail 
received ? 

7. By whom opened? 

8. About what per cent of 
the correspondence pertain¬ 
ing to your division is received 
indirectly (i. e., after having 
been previously opened in 
another division) ? 

9. In what division or cen¬ 
tral office is such mail previ¬ 
ously opened ? 


10. By whom is such previ¬ 
ously opened mail received 

in your division ? 

* * * 

18. State the names and 
salaries of persons engaged 
in opening mail, the esti¬ 
mated portion of his whole 
time consumed by each per¬ 
son in such work, and the cost 
thereof. 


ANSWER. 


Placed in envelopes by mail clerk, 
J. H. Williams, addressed to divi¬ 
sions to which the communications 
pertain. 

60% 


Mail clerks, J. Id. Williams and John 
Smith. 

Mail clerks, J. H. Williams and John 
Smith; 

40% 


In office of Chief Clerk to Third Assist¬ 
ant Postmaster General, except a 
very small portion opened in office 
of Chief Clerk of the Post Office 
Department. 

Mail clerk, J. H. Williams. 


* * * * 


Column 1. 

Column 2. 

Column 3. 

Column 4. 

Name. 

Annual 

salary. 

Portion 
of whole 
time 
engaged 
upon 
work. 

Net cost 
(col. 2X 
col. 3). 

Fox, A. B _ 

$1, 200 
1,000 
900 

50% 

100% 

20% 

$600 

Jones, J. R_ 

Smith, John.. 

1,000 

180 

Total net 
cost 



1,780 




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